Understanding the Impact of Algorithmic Discrimination on Unethical Consumer Behavior

Abstract

The prevalence of artificial intelligence (AI) increases social concern surrounding unethical consumer behavior in human–AI interaction. Existing research has mainly focused on anthropomorphic characteristics of AI and unethical consumer behavior (UCB). However, the role of algorithms in unethical consumer behavior, which is central to AI, is not yet fully understood. Drawing on social exchange theory, this study investigates the impact of algorithmic discrimination on UCB and explores the interrelationships and underlying mechanisms. Through three experiments, this study found that experiencing algorithmic discrimination significantly increases UCB, with anticipatory guilt mediating this relationship. Moreover, consumers’ negative reciprocity beliefs moderated the effects of algorithmic discrimination on anticipatory guilt and UCB. In addition, this study distinguish between active and passive UCB based on their underlying ethical motivations. This enhances the study’s universality by assessing both types of behaviors and highlighting their differences. These insights extend current research on UCB within the purview of AI agents and provide valuable insights into effectively mitigating losses caused by UCB behaviors, offering improved directions for facilitating AI agents to provide fair, reliable, and efficient interactions for both businesses and consumers.