Study finds Instacart’s AI may hike grocery prices by up to 20 percent

Online grocery delivery platform Instacart is under scrutiny following a new report revealing that its use of artificial intelligence could lead to different customers paying different prices for the same item. The investigation, conducted by Consumer Reports and Groundwork Collaborative, found that the technology may inflate costs by as much as 20 percent depending on the shopper.

Researchers said household staples from major retailers including Albertsons, Costco, Kroger, Safeway and Target displayed inconsistent pricing on Instacart’s app. In one test, a dozen eggs at a single Safeway location in Washington, DC, ranged from $3.99 to nearly $4.80 depending on the account viewing the product. A box of private label corn flakes showed a 23 percent price difference between the highest and lowest cost.

The study, which involved 437 volunteer participants comparing digital prices to in-store checkout totals, found that every shopper was subject to algorithmic testing. Analysts estimate cost swings could amount to as much as $1,200 a year for families relying heavily on online grocery delivery.

The organizations say customers are unknowingly part of “AI-enabled experiments,” raising transparency concerns at a time when food prices are already higher due to inflationary pressures, tariffs, labor shortages and weather disruptions affecting supply chains.

Instacart responded that retailers set their own pricing policies, which are disclosed on storefront pages in the app. The company said only about 10 retail partners currently use these AI-based price tests, and that the system is designed to determine which essential items should remain most affordable.

Instacart continues to dominate the e-commerce grocery space, with more than 250 million orders placed in the first nine months of 2025.

Credit: CNN Newsource

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