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Article
Publication date: 22 January 2024

Dinesh Kumar and Nidhi Suthar

Artificial intelligence (AI) has sparked interest in various areas, including marketing. However, this exhilaration is being tempered by growing concerns about the moral and legal…

1261

Abstract

Purpose

Artificial intelligence (AI) has sparked interest in various areas, including marketing. However, this exhilaration is being tempered by growing concerns about the moral and legal implications of using AI in marketing. Although previous research has revealed various ethical and legal issues, such as algorithmic discrimination and data privacy, there are no definitive answers. This paper aims to fill this gap by investigating AI’s ethical and legal concerns in marketing and suggesting feasible solutions.

Design/methodology/approach

The paper synthesises information from academic articles, industry reports, case studies and legal documents through a thematic literature review. A qualitative analysis approach categorises and interprets ethical and legal challenges and proposes potential solutions.

Findings

The findings of this paper raise concerns about ethical and legal challenges related to AI in the marketing area. Ethical concerns related to discrimination, bias, manipulation, job displacement, absence of social interaction, cybersecurity, unintended consequences, environmental impact, privacy and legal issues such as consumer security, responsibility, liability, brand protection, competition law, agreements, data protection, consumer protection and intellectual property rights are discussed in the paper, and their potential solutions are discussed.

Research limitations/implications

Notwithstanding the interesting insights gathered from this investigation of the ethical and legal consequences of AI in marketing, it is important to recognise the limits of this research. Initially, the focus of this study is confined to a review of the most important ethical and legal issues pertaining to AI in marketing. Additional possible repercussions, such as those associated with intellectual property, contracts and licencing, should be investigated more deeply in future studies. Despite the fact that this study gives various answers and best practices for tackling the stated ethical and legal concerns, the viability and efficacy of these solutions may differ depending on the context and industry. Thus, more research and case studies are required to evaluate the applicability and efficacy of these solutions in other circumstances. This research is mostly based on a literature review and may not represent the experiences or opinions of all stakeholders engaged in AI-powered marketing. Further study might involve interviews or surveys with marketing professionals, customers and other key stakeholders to offer a full knowledge of the practical difficulties and solutions. Because of the rapid speed of technical progress, AI’s ethical and regulatory ramifications in marketing are continually increasing. Consequently, this work should be a springboard for more research and continuing conversations on this subject.

Practical implications

This study’s findings have several practical implications for marketing professionals. Emphasising openness and explainability: Marketing professionals should prioritise transparency in their use of AI, ensuring that customers are fully informed about data collection and utilisation for targeted advertising. By promoting openness and explainability, marketers can foster customer trust and avoid the negative consequences of a lack of transparency. Establishing ethical guidelines: Marketing professionals need to develop ethical rules for the creation and implementation of AI-powered marketing strategies. Adhering to ethical principles ensures compliance with legal norms and aligns with the organisation’s values and ideals. Investing in bias detection tools and privacy-enhancing technology: To mitigate risks associated with AI in marketing, marketers should allocate resources to develop and implement bias detection tools and privacy-enhancing technology. These tools can identify and address biases in AI algorithms, safeguard consumer privacy and extract valuable insights from consumer data.

Social implications

This study’s social implications emphasise the need for a comprehensive approach to address the ethical and legal challenges of AI in marketing. This includes adopting a responsible innovation framework, promoting ethical leadership, using ethical decision-making frameworks and conducting multidisciplinary research. By incorporating these approaches, marketers can navigate the complexities of AI in marketing responsibly, foster an ethical organisational culture, make informed ethical decisions and develop effective solutions. Such practices promote public trust, ensure equitable distribution of benefits and risk, and mitigate potential negative social consequences associated with AI in marketing.

Originality/value

To the best of the authors’ knowledge, this paper is among the first to explore potential solutions comprehensively. This paper provides a nuanced understanding of the challenges by using a multidisciplinary framework and synthesising various sources. It contributes valuable insights for academia and industry.

Details

Journal of Information, Communication and Ethics in Society, vol. 22 no. 1
Type: Research Article
ISSN: 1477-996X

Keywords

Book part
Publication date: 20 November 2023

Osman Koroglu

The impact of artificial intelligence (AI) and extended reality (XR, including virtual reality [VR], augmented reality [AR], and mixed reality [MR]) on marketing in Industry 5.0…

Abstract

The impact of artificial intelligence (AI) and extended reality (XR, including virtual reality [VR], augmented reality [AR], and mixed reality [MR]) on marketing in Industry 5.0 and Society 5.0 is explored with systematic literature review in this chapter. AIXR is becoming a necessary aspect of marketing, driven by efficiency, productivity, and innovation. Despite AI's capabilities, the human touch in marketing is preferred due to superior adaptive, creative, and innovative abilities. The use of fully automated marketing systems is limited to specific tasks. This research will benefit both practitioners and academics focusing on AIXR in marketing and is limited by the number of included literature.

Details

Digitalization, Sustainable Development, and Industry 5.0
Type: Book
ISBN: 978-1-83753-191-2

Keywords

Article
Publication date: 26 July 2023

James W. Peltier, Andrew J. Dahl and John A. Schibrowsky

Artificial intelligence (AI) is transforming consumers' experiences and how firms identify, create, nurture and manage interactive marketing relationships. However, most marketers…

3302

Abstract

Purpose

Artificial intelligence (AI) is transforming consumers' experiences and how firms identify, create, nurture and manage interactive marketing relationships. However, most marketers do not have a clear understanding of what AI is and how it may mutually benefit consumers and firms. In this paper, the authors conduct an extensive review of the marketing literature, develop an AI framework for understanding value co-creation in interactive buyer–seller marketing relationships, identify research gaps and offer a future research agenda.

Design/methodology/approach

The authors first conduct an extensive literature review in 16 top marketing journals on AI. Based on this review, an AI framework for understanding value co-creation in interactive buyer–seller marketing relationships was conceptualized.

Findings

The literature review led to a number of key research findings and summary areas: (1) an historical perspective, (2) definitions and boundaries of AI, (3) AI and interactive marketing, (4) relevant theories in the domain of interactive marketing and (5) synthesizing AI research based on antecedents to AI usage, interactive AI usage contexts and AI-enabled value co-creation outcomes.

Originality/value

This is one of the most extensive reviews of AI literature in marketing, including an evaluation of in excess or 300 conceptual and empirical research. Based on the findings, the authors offer a future research agenda, including a visual titled “What is AI in Interactive Marketing? AI design factors, AI core elements & interactive marketing AI usage contexts.”

Open Access
Article
Publication date: 15 February 2024

Hina Naz and Muhammad Kashif

Artificial intelligence (AI) offers many benefits to improve predictive marketing practice. It raises ethical concerns regarding customer prioritization, market share…

1956

Abstract

Purpose

Artificial intelligence (AI) offers many benefits to improve predictive marketing practice. It raises ethical concerns regarding customer prioritization, market share concentration and consumer manipulation. This paper explores these ethical concerns from a contemporary perspective, drawing on the experiences and perspectives of AI and predictive marketing professionals. This study aims to contribute to the field by providing a modern perspective on the ethical concerns of AI usage in predictive marketing, drawing on the experiences and perspectives of professionals in the area.

Design/methodology/approach

The study conducted semistructured interviews for 6 weeks with 14 participants experienced in AI-enabled systems for marketing, using purposive and snowball sampling techniques. Thematic analysis was used to explore themes emerging from the data.

Findings

Results reveal that using AI in marketing could lead to unintended consequences, such as perpetuating existing biases, violating customer privacy, limiting competition and manipulating consumer behavior.

Originality/value

The authors identify seven unique themes and benchmark them with Ashok’s model to provide a structured lens for interpreting the results. The framework presented by this research is unique and can be used to support ethical research spanning social, technological and economic aspects within the predictive marketing domain.

Objetivo

La Inteligencia Artificial (IA) ofrece muchos beneficios para mejorar la práctica del marketing predictivo. Sin embargo, plantea preocupaciones éticas relacionadas con la priorización de clientes, la concentración de cuota de mercado y la manipulación del consumidor. Este artículo explora estas preocupaciones éticas desde una perspectiva contemporánea, basándose en las experiencias y perspectivas de profesionales en IA y marketing predictivo. El estudio tiene como objetivo contribuir a la literatura de este ámbito al proporcionar una perspectiva moderna sobre las preocupaciones éticas del uso de la IA en el marketing predictivo, basándose en las experiencias y perspectivas de profesionales en el área.

Diseño/metodología/enfoque

Para realizar el estudio se realizaron entrevistas semiestructuradas durante seis semanas con 14 participantes con experiencia en sistemas habilitados para IA en marketing, utilizando técnicas de muestreo intencional y de bola de nieve. Se utilizó un análisis temático para explorar los temas que surgieron de los datos.

Resultados

Los resultados revelan que el uso de la IA en marketing podría tener consecuencias no deseadas, como perpetuar sesgos existentes, violar la privacidad del cliente, limitar la competencia y manipular el comportamiento del consumidor.

Originalidad

El estudio identifica siete temas y los comparan con el modelo de Ashok para proporcionar una perspectiva estructurada para interpretar los resultados. El marco presentado por esta investigación es único y puede utilizarse para respaldar investigaciones éticas que abarquen aspectos sociales, tecnológicos y económicos dentro del ámbito del marketing predictivo.

人工智能(AI)为改进预测营销实践带来了诸多益处。然而, 这也引发了与客户优先级、市场份额集中和消费者操纵等伦理问题相关的观点。本文从当代角度深入探讨了这些伦理观点, 充分借鉴了人工智能和预测营销领域专业人士的经验和观点。旨在通过现代视角提供关于在预测营销中应用人工智能时所涉及的伦理观点, 为该领域做出有益贡献。

研究方法

本研究采用了目的性和雪球抽样技术, 与14位在人工智能营销系统领域具有丰富经验的参与者进行为期六周的半结构化访谈。研究采用主题分析方法, 旨在深入挖掘数据中显现的主要主题。

研究发现

研究结果表明, 在营销领域使用人工智能可能引发一系列意外后果, 包括但不限于加强现有偏见、侵犯客户隐私、限制竞争以及操纵消费者行为。

独创性

本研究通过明确定义七个独特的主题, 并采用阿肖克模型进行基准比较, 为读者提供了一个结构化的视角, 以解释研究结果。所提出的框架具有独特之处, 可有效支持在跨足社会、技术和经济领域的预测营销中展开的伦理研究。

Abstract

Details

Artificial Intelligence in Marketing
Type: Book
ISBN: 978-1-80262-875-3

Open Access
Article
Publication date: 5 December 2023

Ali Zarifhonarvar

The study investigates the influence of ChatGPT on the labor market dynamics, aiming to provide a structured understanding of the changes induced by generative AI technologies.

4709

Abstract

Purpose

The study investigates the influence of ChatGPT on the labor market dynamics, aiming to provide a structured understanding of the changes induced by generative AI technologies.

Design/methodology/approach

An analysis of existing literature serves as the foundation for understanding the impact, while the supply and demand model helps assess the effects of ChatGPT. A text-mining approach is utilized to analyze the International Standard Occupation Classification, identifying occupations most susceptible to disruption by ChatGPT.

Findings

The study reveals that 32.8% of occupations could be fully impacted by ChatGPT, while 36.5% might experience a partial impact and 30.7% are likely to remain unaffected.

Research limitations/implications

While this study offers insights into the potential influence of ChatGPT and other generative AI services on the labor market, it is essential to note that these findings represent potential implications rather than realized labor market effects. Further research is needed to track actual changes in employment patterns and job market dynamics where these AI services are widely adopted.

Originality/value

This paper contributes to the field by systematically categorizing the level of impact on different occupations, providing a nuanced perspective on the short- and long-term implications of ChatGPT and similar generative AI services on the labor market.

Details

Journal of Electronic Business & Digital Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2754-4214

Keywords

Book part
Publication date: 13 March 2023

MengQi (Annie) Ding and Avi Goldfarb

This article reviews the quantitative marketing literature on artificial intelligence (AI) through an economics lens. We apply the framework in Prediction Machines: The Simple

Abstract

This article reviews the quantitative marketing literature on artificial intelligence (AI) through an economics lens. We apply the framework in Prediction Machines: The Simple Economics of Artificial Intelligence to systematically categorize 96 research papers on AI in marketing academia into five levels of impact, which are prediction, decision, tool, strategy, and society. For each paper, we further identify each individual component of a task, the research question, the AI model used, and the broad decision type. Overall, we find there are fewer marketing papers focusing on strategy and society, and accordingly, we discuss future research opportunities in those areas.

Details

Artificial Intelligence in Marketing
Type: Book
ISBN: 978-1-80262-875-3

Keywords

Book part
Publication date: 23 April 2024

Ali Makhlooq and Muneer Al Mubarak

It is important to implement artificial intelligence (AI) because it can simplify and solve complex problems faster than humans. Because AI learns about people and their behavior…

Abstract

It is important to implement artificial intelligence (AI) because it can simplify and solve complex problems faster than humans. Because AI learns about people and their behavior from the first purchase, AI marketing can boost marketing efforts by leveraging data to target extremely precise consumer groups. There is a debate about the efficacy of AI marketing due to the constraints and limits imposed by the system's nature. This chapter presents insights from published studies regarding the relationship of AI with marketing and how AI can affect marketing. A real-world example of Netflix's usage of AI in marketing has been demonstrated. Then, consumer attitudes regarding AI were revealed. Then, several ethical considerations concerning AI were highlighted. Finally, the anticipated future of AI marketing was addressed. This chapter demonstrated the significance of firms implementing AI marketing to get a competitive advantage. Although some of the difficulties mentioned in this study need to be resolved, AI marketing has a bright future. There are ethical concerns about bias and privacy that should be addressed further. This chapter will encourage firms to use AI systems in marketing, and it will open the door to concerns that will need to be investigated academically in the future.

Details

Technological Innovations for Business, Education and Sustainability
Type: Book
ISBN: 978-1-83753-106-6

Keywords

Article
Publication date: 6 July 2023

Guangkuan Deng, Jianyu Zhang and Ying Xu

Considering the emergence of e-commerce platforms and their integration into marketing channels, this paper aims to investigate how artificial intelligence (AI) resources – both…

Abstract

Purpose

Considering the emergence of e-commerce platforms and their integration into marketing channels, this paper aims to investigate how artificial intelligence (AI) resources – both technological and human – possessed by e-commerce platforms can enhance their channel power by acquiring market-based assets (relational and intellectual).

Design/methodology/approach

Based on resource-based theory and resource orchestration theory, the authors developed a framework tested using survey data gathered from the sellers, which incorporated six key variables: the e-commerce platform’s AI technology resources and human resources, rational and intellectual market-based assets, intraplatform competition and channel power. The analyses are performed using the regression analysis technique.

Findings

The empirical findings indicate that both technological and human AI resources are crucial in building channel power. In addition, market-based assets serve as a mediator in this relationship, while intraplatform competition moderates the effect of intellectual market-based assets on channel power negatively.

Originality/value

This study contributes to the existing literature by exploring how e-commerce platforms’ AI resources affect their channel power. The results offer valuable guidance to managers and researchers on optimizing AI resources to improve channel power.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 18 July 2022

Youjiang Gao and Hongfei Liu

Artificial intelligence (AI) technology has revolutionized customers' interactive marketing experience. Although there have been a substantial number of studies exploring the…

4168

Abstract

Purpose

Artificial intelligence (AI) technology has revolutionized customers' interactive marketing experience. Although there have been a substantial number of studies exploring the application of AI in interactive marketing, personalization as an important concept remains underexplored in AI marketing research and practices. This study aims to introduce the concept of AI-enabled personalization (AIP), understand the applications of AIP throughout the customer journey and draw up a future research agenda for AIP.

Design/methodology/approach

Drawing upon Lemon and Verhoef's customer journey, the authors explore relevant literature and industry observations on AIP applications in interactive marketing. The authors identify the dilemmas of AIP practices in different stages of customer journeys and make important managerial recommendations in response to such dilemmas.

Findings

AIP manifests itself as personalized profiling, navigation, nudges and retention in the five stages of the customer journey. In response to the dilemmas throughout the customer journey, the authors developed a series of managerial recommendations. The paper is concluded by highlighting the future research directions of AIP, from the perspectives of conceptualization, contextualization, application, implication and consumer interactions.

Research limitations/implications

New conceptual ideas are presented in respect of how to harness AIP in the interactive marketing field. This study highlights the tensions in personalization research in the digital age and sets future research agenda.

Practical implications

This paper reveals the dilemmas in the practices of personalization marketing and proposes managerial implications to address such dilemmas from both the managerial and technological perspectives.

Originality/value

This is one of the first research papers dedicated to the application of AI in interactive marketing through the lenses of personalization. This paper pushes the boundaries of AI research in the marketing field. Drawing upon AIP research and managerial issues, the authors specify the AI–customer interactions along the touch points in the customer journey in order to inform and inspire future AIP research and practices.

Details

Journal of Research in Interactive Marketing, vol. 17 no. 5
Type: Research Article
ISSN: 2040-7122

Keywords

1 – 10 of over 25000