AI Pricing Insights

Artificial intelligence (AI) refers to the ability of machines to perform tasks that typically require human-like intelligence, including visual perception, speech recognition, decision-making, and natural language processing. AI systems use algorithms and mathematical models to analyze data, learn from patterns, and make predictions or decisions.  

Rule-based systems, machine learning, and deep learning are different types of AI. Rule-based systems follow predefined rules to make decisions, while machine learning algorithms learn from data to improve their performance over time. Deep learning, a subset of machine learning, uses neural networks that mimic the structure and function of the human brain. Click here for more information on how AI works, its benefits, and its challenges. 

An AI price solution using machine learning automatically learns from accessing and analyzing data sources – like historical transactional data – and quickly optimizes pricing recommendations without needing to be reprogrammed. 

What we have found to be the most effective approach is to leverage data science techniques and models that are understandable by business stakeholders, and that are combined with human intelligence.  Some refer to this approach as a “centaur”, “cyborg” or “copilot” approach. This combination of machine intelligence and human intelligence has proven to be the most effective way to leverage advanced data science in many cases, especially in B2B enterprises. 

Vendavo solutions incorporate fully embedded AI for leading-edge performance. For instance: Vendavo’s Deal Price Optimizer software lets you calculate optimized pricing guidance thanks to a patented Power & Risk™ algorithm that uses your historical transactional data. The result? You quickly present customers with optimized prices that maximize margin and minimize the risk of losing them during negotiations. Our Deal Price Guidance solution delivers deal-specific pricing guidance directly to your CRM and quotation workflow, while continuously optimizing deal win rates, enterprise profitability targets, and the overall customer experience. Learn more about Vendavo products here. 

No, Vendavo is not a machine learning platform or CAIDS where users build their own models and applications. Vendavo builds and operates purpose-built SaaS solutions for manufacturing and distribution industries, that enable advanced analytical insights, AI price management & optimization, digital commerce & sales processes, and rebate & channel incentive management. While our SaaS products have data science embedded within them, users are still able to supervise, fine-tune, and control these models by changing the algorithmic parameters (available in the GUI). 

We frequently work with our customers to collaborate on enhancements, new capabilities, and even new products through our Vendavo Solutions User Group (VSUG) and our Vendavo Lighthouse Customer Program.  Most of our enhancements and innovations over the years have been driven by our customers.