Multi-Agent AI Automates Retail Price Taxonomy.

Ravi Teja Chunduri, Srikaran Reddy Boya, Deep Narayan Mishra, Ajay Kumar B, Karthik Kumaran, Pranay Kona· August 14, 2026 View original

Key takeaways

  • A multi-agent LLM framework automates complex retail pricing taxonomies.
  • It ensures consistent pricing across millions of items, crucial for large retailers.
  • The system achieves high accuracy in identifying attributes and grouping products.
  • Deployment in production shows significant performance improvements over manual methods.

Who benefits

RetailE-commerceSupply ChainData Analytics

Summary

This paper introduces a scalable, context-aware Multi-Agent Framework using specialized LLM agents to automate "Lines and Ladders" pricing taxonomies for large-scale retailers. The system identifies attributes, extracts values, and applies hierarchical grouping logic, achieving high F1-scores and precision in real-world deployments for consistent pricing.

For global retailers managing millions of active items, maintaining consistent pricing and implementing an Every Day Low Price strategy is crucial but manually unfeasible. Inconsistent pricing across product variants can negatively impact customer perception and cannibalize sales. To tackle this challenge, a new scalable, context-aware Multi-Agent Framework has been developed to automate the creation of "Lines and Ladders" pricing taxonomies. This framework employs specialized Large Language Model (LLM) agents that work collaboratively. These agents are designed to identify key product attributes, extract multi-modal values from various data sources, and apply hierarchical grouping logic to construct coherent pricing structures. Evaluated on real-world enterprise data and already deployed in production, the 3-Agent system achieved an F1-score of 0.83 for "Lines," significantly outperforming single-agent baselines by reducing cognitive overload. The system demonstrates over 90% precision and 75% recall in Food & Consumables, and 80.2% assignment accuracy in the less structured General Merchandise catalog.

Why it matters

Retail professionals can leverage this AI framework to automate complex pricing taxonomy management, ensuring consistent pricing across vast product catalogs, improving customer trust, and optimizing sales strategies.

How to implement this in your domain

  1. 1Assess current manual pricing taxonomy processes and identify bottlenecks.
  2. 2Pilot the Multi-Agent Framework with a subset of their product catalog to validate its effectiveness.
  3. 3Integrate the LLM agents with existing product data management (PDM) and e-commerce systems.
  4. 4Train pricing and merchandising teams on how to interact with and oversee the automated taxonomy system.
  5. 5Monitor system performance and conduct A/B testing to measure the impact on sales and customer perception.

Original post by Ravi Teja Chunduri, Srikaran Reddy Boya, Deep Narayan Mishra, Ajay Kumar B, Karthik Kumaran, Pranay Kona

"arXiv:2608.12674v1 Announce Type: new Abstract: Maintaining price consistency and executing an Every Day Low Price strategy is critical for global retailers. However, with catalogs spanning millions of active items, manual governance of price relationships is infeasible. Inconsis…"

View on X

Originally posted by Ravi Teja Chunduri, Srikaran Reddy Boya, Deep Narayan Mishra, Ajay Kumar B, Karthik Kumaran, Pranay Kona on X · view source

Want to go deeper?

Turn these trends into skills with Learnijoy's hands-on AI & tech courses.

Explore courses

More in AI Engineering & DevTools