AI-Personalization Paradox

Abstract

The integration of AI into various aspects of our lives has significantly reshaped how we access information, products, and services. AI-driven personalization, a key feature of many platforms, aims to enhance user experiences by tailoring content to individual preferences. Advancement of AI personalization has given rise to the filter bubble and echo-chamber phenomena. Filter bubbles expose consumers to content that reinforces their existing beliefs and preferences, creating a paradox. This chapter explores the multifaceted implications of AI-personalization paradox on digital consumer behavior in the context of the filter bubble era investigating how AI algorithms shape the content users encounter, impact of algorithms on information diversity, and consequences for consumer decision-making. The chapter concludes speculating on future of personalization, emphasizing the need to balance customization with information diversity, encouraging critical thinking about AI ethics among consumers.