Paradoxes of artificial intelligence in consumer markets: Ethical challenges and opportunities

Products and services empowered by artificial intelligence (AI) are becoming widespread in today’s marketplace. However, consumers have mixed feelings about AI technologies due to the numerous ethical challenges associated the development and deployment of AI. Drawing upon prior research on the moral significance of technology and the emerging literature on AI, we delineate three key dimensions of AI-enabled products (i.e., multi-functionality, interactivity, and AI intelligence stage) that have relevance for ethical implications and adopt a socio-technical approach to provide a multi-layered ethical analysis of AI products at the product-, consumer-, and society-levels. Some key ethical issues identified in the paper include AI biases, ethical design, consumer privacy, cybersecurity, individual autonomy and wellbeing, and unemployment. Companies need to engage in corporate social responsibility (CSR) to shape the future of ethical AI; drawing upon stakeholder theory and institutional theory, we develop a conceptual framework on AI-related CSR, highlighting the product-, company-, and institutional environment-specific factors that influence firms’ socially responsible actions in the domain of AI and discussing the subsequent outcomes for firm, consumers, and the society. We include a section on future research agenda for AI ethics and firm CSR in this important domain.