When shopping online, whether for cars, real estate, or collectibles, consumers rely on more than just photos. The words used to describe a product can shape perceptions, influence decisions, and even drive valuations. But which words matter most? And in what combination? 

In this episode of “Dialogue with the Dean,” Julian Birkinshaw speaks with Fredrik Ødegaard, Associate Professor of Management Science, about his first-of-its-kind research on the power of language in pricing and market dynamics – and how AI is helping us decode it.

In the study, “Giving Deep Attention to Consumer Preferences with Large Language Models,” Fredrik and Joshua Foster, Ivey Assistant Professor of Business, Economics and Public Policy, along with Aysajan Eziz, Assistant Professor of Management Science, and Brad Hackinen, Assistant Professor of Business, Economics and Public Policy, develop a novel application of generative AI to gain insight on how text descriptions – like those in online car auctions – drive consumer valuation, which in turn can be used for predicting market prices. Even more compelling, the study shows that specific words, and in specific combinations, can increase an item’s value, uncovering the hidden impact of language in digital marketplaces.

Julian and Fredrik also explore how AI can be used more creatively in business and education, moving beyond automation to unlock deeper insights.

Tune in to discover how words shape consumer behavior – and how AI is redefining the way we buy and sell.