Do we buy because we decided to or because the algorithm told us to?

Abstract

Artificial intelligence (AI) shapes the daily decisions of consumers. As their presence becomes more pervasive, so too do concerns about how ethically and transparently these systems operate. This study explores how consumers perceive AI regulation and ethics, and how these perceptions influence their concerns about privacy and security, expectations regarding sustainability, and the quality of their overall experience. Factors that, together, shape their purchasing decisions. Grounded in a quantitative approach, the research draws on data from 139 respondents and applies structural equation modelling to examine the relationships between key constructs. The results paint a clear picture: perceptions of ethical and well-regulated AI significantly heighten awareness of privacy issues and foster more favourable views on sustainability and efficiency. These perceptions also contribute, though more moderately, to a more fluid and trusting consumer experience. Interestingly, it is this experience that appears to strengthen the belief in AI’s potential to drive more sustainable consumption. However, the data also reveals a notable tension: despite acknowledging the benefits of AI, many consumers continue to favour human interaction when it comes to making purchasing decisions. This ambivalence highlights the complexity of trust in AI systems and points to the need for brands and developers to go beyond technical functionality, designing AI interactions that are not only efficient but also ethically transparent and aligned with shared values. Ultimately, the study contributes to broader discussions on responsible innovation and supports the advancement of the United Nations' SDG 9 and SDG 12.