
Consumer Distrust: Non-Transparent AI Decision-Making Processes
Chapter from the book:
Özkaynar,
K.
&
Abbasoğlu,
Ş.
(eds.)
2025.
Consumer, Marketing, AI: Dark Sides and Ethics.
Synopsis
Today, artificial intelligence (AI) has emerged as a pivotal technology that influences decision-making processes across various domains, including digital marketing and customer relations. However, the lack of transparency in AI systems, coupled with their failure to provide consumers with adequate clarity regarding their decision-making processes, significantly contributes to consumer distrust. This uncertainty, often referred to as the "black box consumers to adopt a skeptical and cautious attitude toward brands and the services they offer.
Non-transparent AI decision-making processes can lead to consumer distrust. Factors such as perceived injustice, data privacy concerns, and ethical uncertainties are believed to undermine consumer confidence, ultimately affecting purchasing decisions. Consumers increasingly demand transparency, auditability, and adherence to ethical principles to trust automated decision-making systems. Therefore, it is essential for brands to embrace the principle of transparency, enhance the comprehensibility of AI-based systems, and elevate their ethical responsibilities to restore consumer trust.
The growing prevalence of AI-based decision-making processes presents numerous opportunities for consumers; however, it also raises significant trust issues. Non-transparent AI systems impede consumers' ability to comprehend how decisions are made, resulting in diminished levels of trust.
Consumers often struggle to understand how artificial intelligence (AI) operates and the criteria it employs to make decisions. AI systems can yield unfair or discriminatory outcomes due to biases present in the datasets utilized. Furthermore, uncertainties surrounding the use of personal data erode consumer trust in AI-based systems.
AI can sometimes mislead consumers by relying on inaccurate or incomplete information. To address these challenges, it is essential to enhance transparency policies, develop explainable AI models, and implement regulations that safeguard consumer rights. By taking these measures, we can bolster consumer trust in AI-based systems.