SBIR Phase I: Scalable AI-Enabled Automated Pricing Tool for Service Industries

The broader/commercial impact of this Small Business Innovation Research (SBIR) Phase I project is to empower organizations that are exposed to dynamic pricing – such as in the transportation, retail and e-commerce sectors - with affordable, automated revenue management tools that enhance pricing decisions and improve financial performance. Organizations in these sectors often lack the resources, data infrastructure, and expertise needed to implement advanced pricing strategies. This project aims to provide access to smart pricing technology by developing an artificial intelligence-driven platform capable of operating effectively in data-scarce and competitive environments. The broader societal impacts include strengthening small businesses and supporting the economies surrounding dynamic pricing sectors. The innovations in forecasting, optimization, and competitive analysis have potential applications across a range of sectors experiencing dynamic pricing, thereby offering the potential for substantial commercial impact.

This Small Business Innovation Research (SBIR) Phase I project addresses the challenge of optimizing pricing decisions in dynamically priced market sectors with limited historical data and intense price competition. The research objectives are to develop (1) novel demand forecasting methods that combine observational data with lightweight online experimentation; (2) an automated competitor analysis engine using econometric and machine learning tools; and (3) fast heuristic optimization algorithms to support real-time, network-wide pricing decisions. The project will implement and validate these innovations using real-world data and simulated operational settings. Anticipated technical results include accurate demand forecasts, robust pricing algorithms, and demonstrated revenue gains in pilot environments - laying the groundwork for scalable commercial deployment and continued innovation in dynamic pricing.

This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.

Award Number: 2451100
Principal Investigator: Jeff Loucks
Funds Obligated: $299,700
State: CO