The Emergence of Generative AI and its Impact on Consumer Decision-Making: Convenience vs Control

Authors

  • Tracy Joan Reid Assistant Professor, Department of Commerce, St Xavier's College of Management and Technology.

DOI:

https://doi.org/10.69968/ijisem.2025v4si159-65

Keywords:

Generative AI, Search Engine Optimisation (SEO), Ethical Implication, Data Privacy, Consumer Behaviour

Abstract

In the fast-paced and dynamic VUCA (Volatile, uncertain, complex, and ambiguous) world, the emergence of Generative Artificial Intelligence or GenAI is the most recent and popular technological advancement in today’s date. It plays a major role in revolutionising the consumer landscape, by offering advanced search engine optimisation (SEO) services to boost website visibility and optimise performance in search engine results. These tools ensure users are presented with personalised suggestions and recommendations tailored to their trade-off at a cost: the potential erosion of consumer control over independent decision-making. Another such cost is the user data collection without obtaining explicit consent, triggered by a single interaction or one-time website visit. By analysing the interplay between convenience and control, the study focuses on exploring the role of generative AI in influencing a consumer’s decision-making process and purchase behaviour. It also explores the risks associated with data privacy, data security, algorithmic bias as well as the potential for manipulation of consumer choices after the emergence of such technology technology. To ensure relevant insights, this study uses primary data collected specifically for the purpose of this research. Lastly, this paper also investigates the ethical implications of GenAI in customer engagement as well as discusses way forward.

References

[1] Agile Brand Guide. (2023). Enhancing E-commerce with Generative AI. Retrieved from: https://agilebrandguide.com/enhancing-e-commerce-with-generative-ai/ (Accessed February 19, 2024)

[2] Altexsoft. (2022). Generative AI Models Explained. Retrieved from: https://www.altexsoft.com/blog/generative-ai/ (Accessed February 19, 2024)

[3] Amarin, M. (2024). Mastering Generative Artificial Intelligence in Digital Marketing. Medium. Retrieved from: https://medium.com/@amarin/mastering-generative-artificial-intelligence-in-digital-marketing-3be6f64a6c7b

[4] Ananthakrishnan, R. & Arunachalam, T. (2022). Comparison Of Consumers Perception Between Human Generated And Ai Aided Brand Content. Webology, 19(2). Retrieved from: https://www.webology.org/abstract.php?id=2131 (Accessed March 24, 2024)

[5] Arman, M. D. & Umama, L. (2023). ChatGPT, a Product of AI, and its Influences in the Business World. Journal of Islamic Finance, 3(1). https://doi.org/10.54045/talaa.v3i1.725

[6] Babayev, N. & Israfilzade, K. (2023). Creating complexity matrix for classifying artificial intelligence applications in e-commerce: New perspectives on value creation. Journal of Life Economics, 10(3), 141-156,https://doi.org/10.15637/jlecon.2078

[7] Brown S. (2023). The Evolution of Generative AI up to the Model-Driven Era. Cadence. Retrieved from: https://community.cadence.com/cadence_blogs_8/b/artificial-intelligence/posts/the-evolution-of-generative-ai-up-to-the-model-driven-era

[8] Dojo Staff. (2023). Generative AI in marketing: 2024 key trends of digital marketing. Data Science Dojo. Retrieved from: https://datasciencedojo.com/blog/generative-ai-in-marketing/

[9] Ecommerce News. (2023). Generative AI in Ecommerce: A Look beyond Texts. Retrieved from: https://ecommercenews.eu/generative-ai-in-ecommerce-a-look-beyond-texts/

[10] Hall, P. (2023). Generative AI: A brief overview of its history and impact. LTX. Retrieved from: https://www.lxt.ai/blog/generative-ai-a-brief-overview-of-its-history-and-impact/

[11] Khanna, S. (2023). The Fascinating Evolution of Generative AI. Analytics Vidhya. Retrieved from: https://www.analyticsvidhya.com/blog/2023/07/the-fascinating-evolution-of-generative-ai/

[12] Kowalczyk, P., Röder, M., & Thiesse, F. (2023). Nudging creativity in digital marketing with generative artificial intelligence: opportunities and limitations. In European Conference on 65 Information Systems. Würzburg (Mo.): University of Würzburg. Retrieved from:https://www.researchgate.net/publication/370048624_NUDGING_CREATIVITY_IN_DIGITAL_MARKETING_WITH_GENERATIVE_ARTIFICIAL_INTELLIGENCE_OPPORTUNITIES_AND_LIMITATIONS

[13] Lanz J. A. (2024). Google Gemini Advanced vs OpenAI ChatGPT Plus: Here's How They Stack Up. Emerge. Retrieved from: https://decrypt.co/216982/gemini-advanced-chatgpt-plus-feature-comparison

[14] Laudon K. C. & Traver C. G. (2015). E-commerce: Business, Technology, Society. Pearson. Retrieved from: https://bawar.net/data0/books/5c63140ab1587/pdf/Kenneth_C__Laudon,_Carol_Guercio_Traver_-_E-Commerce_2017_(2017,_Pearson).pdf

[15] Lawton, G. (2023). What is generative AI? Everything you need to know. TechTarget. Retrieved from:https://www.techtarget.com/searchenterpriseai/definition/generative-AI

[16] Lee, B. (2023). Generative AI in E-Commerce Market. Medium. Retrieved from:https://medium.com/@bennettlee910/generative-ai-in-e-commerce-market-09f5d0478f33

[17] Martineau, K. (2023). What is generative AI? IBM. Retrieved from: https://research.ibm.com/blog/what-is-generative-AI (Accessed February 19, 2024)

[18] Paredes-Corvalan, D., Pezoa-Fuentes, C., Silva-Rojas, G., Valenzuela Rojas, I., & Castillo-Vergara, M. (2023). Engagement of the e-commerce industry in the US, according to Twitter in the period of the COVID-19 pandemic. Heliyon, 9(7).https://doi.org/10.1016/j.heliyon.2023.e16881

[19] Parikh, N. A. Empowering Business Transformation: The Positive Impact and Ethical Considerations of Generative AI in Software Product Management. A Systematic Literature Review. Capitol Technology University. Retrieved from: https://www.researchgate.net/publication/371375888_Empowering_Business_Transformation_The_Positive_Impact_and_Ethical_Considerations_of_Generative_AI_in_Software_Product_Management_--_A_Systematic_Literature_Review

[20] Zlateva, P., Steshina, L., Petukhov, I., & Velev, D. (2024). A Conceptual Framework for Solving Ethical Issues in Generative Artificial Intelligence. Electronics, Communications and Networks.https://doi.org/10.3233/FAIA231182

Downloads

Published

28-04-2025

Issue

Section

Articles

How to Cite

[1]
Reid, T.J. 2025. The Emergence of Generative AI and its Impact on Consumer Decision-Making: Convenience vs Control. International Journal of Innovations in Science, Engineering And Management. 4, 1 (Apr. 2025), 59–65. DOI:https://doi.org/10.69968/ijisem.2025v4si159-65.