I don't believe that turning on automated pricing affects your search ranking directly.
Guests are getting more sophistocated about search. they will set a minimum and maximum price.
One risk of lowering your price is that you may lower it to a point where it's below your ideal guests comfort zone.
the min pricing allows people to select out places they think are likely to be "too cheap" and not offer the quality they want. so you may have a perfect offering and they'll never see it.
it may also move your listing INTO someones pricerange. This could either be really good (someone great gets a really good place for a price they otherwise couldn't afford, and they have a great experience and they're forever grateful), or really bad (some cheapskate who is trying to maximize the value of every penny and thinks this entitles them to things that aren't on offer).