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Is Artificial Intelligence Manipulating Your Consumers?

In today’s digital landscape, the omnipresence of artificial intelligence (AI) is reshaping how online platforms interact with consumers. As AI algorithms grow increasingly sophisticated, they offer personalized experiences, from tailored advertisements to product recommendations. However, alongside these advancements come concerns about the potential manipulation of consumer behavior. With AI’s ability to gather vast amounts of data, companies may exploit consumer vulnerabilities to drive sales, even at the expense of product quality and consumer well-being. Such practices raise questions about ethics, transparency, and the need for regulatory oversight in the digital marketplace. Understanding the implications of AI-driven manipulation is essential for safeguarding consumer interests and ensuring a fair and trustworthy online environment. Hence, this article from Duke Fuqua Business Insights emphasizes whether artificial intelligence has the potential to manipulate consumers.

The article discusses how the integration of AI into online platforms benefits users through personalized advertising but also highlights concerns about potential manipulative practices. According to Professor Ali Makhdoumi of Duke University, AI-powered platforms possess an information advantage over consumers, enabling them to exploit vulnerabilities and influence behavior. Makhdoumi’s research, in collaboration with other scholars, outlines conditions where artificial intelligence may profitably manipulate consumers by enhancing product attractiveness and concealing drawbacks. This manipulation could lead consumers towards low-quality products, especially when platforms prolong the deception. Concerns include surveillance and price discrimination, prompting discussions on regulatory interventions to mitigate behavioral manipulation. However, finding a balance between preventing data exploitation and leveraging AI benefits remains a challenge for policymakers. Potential regulatory measures include limiting personalized recommendations to curb extreme behavioral manipulation.

Artificial intelligence is the buzzing technology of the day, with the potential to turn anything into a practicality. The preceding text highlights how it may potentially manipulate consumers and what can be done to prevent this.

To learn more about how to use various technological tools in this Duke Chief Financial Officer (CFO) Program.

CHIEF FINANCIAL OFFICER (CFO) PROGRAM

Cherish Kaur

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