The Role of User Empowerment, AI Hallucination, and Privacy Concerns in Continued Use and Premium Subscription Intentions: An Extended Technology Acceptance Model for Generative AI

Abstract

This study extends the Technology Acceptance Model for Generative AI (GAI) by incorporating perceived user empowerment (PUE) and two risk factors–privacy concerns and hallucination risks. A survey of 783 U.S. GAI users revealed that PUE directly influenced continuance intention (CI) and willingness to pay for premium service (PAY) and indirectly affected CI through attitude toward AI (ATTAI). Perceived ease of use was indirectly linked to CI via ATTAI. Privacy concerns negatively affected CI, while hallucination risks negatively influenced ATTAI, which reduced CI. The findings underscore the role of PUE and risk perceptions in CI and PAY for GAI.