Consumer’s information privacy and security concerns and use of intelligent technology

Abstract

Using the data from the 2017 Survey on Information Security, we seek to identify specific security and privacy concerns of consumers that are significantly associated with consumers’ use of AI and IoT services. The major findings were as follows. First, the common security and privacy concerns that affected use of both intelligent technologies, AI and IoT, were “excessive collection of personal information”, “unlawful use of personal information by hacking”, and “massive spread of damage due to increased connectivity”. Second, additionally, use of IoT services was negatively associated with consumer’s concerns on privacy invasion, management vulnerability due to multiple connectivity, malware and ransomware attack, and operational failures and interruptions. Third, consumers who concerned on unlawful collection of personal information by hacking and uncertainty on responsible entity for security breach were less likely to use AI services. These results suggested that consumers prioritize security concerns over privacy concerns in using intelligent technology.