Artificial intelligence and consumer behavior: From predictive to generative AI

Since the introduction of ChatGPT, the leading example of Generative Artificial Intelligence (GenAI), the research community and the general public have been captivated by GenAI's remarkable advances in performance, and its ability to both imitate and, in some respects, surpass human capabilities. This paper offers a comprehensive analysis of the impact of AI on consumer behavior, focusing on the two pivotal phases of AI development over the past 15 years. We start by reviewing the extensively researched, yet still growing, field of algorithmic predictions and decision-making, alongside the varied positive and negative consumer reactions it elicits. Subsequently, we delve into the just emerging field of GenAI. Here, we differentiate between Convergent Thinking GenAI, which is more domain-specific and geared towards pre-defined task completion, and Divergent Thinking GenAI, which is more domain-general and oriented towards new task fulfillment. For each of these realms, we identify key areas for future investigation.