Exploring the role of AI algorithmic agents: The impact of algorithmic decision autonomy on consumer purchase decisions

Abstract

Although related studies have examined the impact of different images of artificial intelligence products on consumer evaluation, exploring the impact on consumer purchase decisions from the perspective of algorithmic decision autonomy remains under-explored. Based on the self-determination theory, this research discusses the influence of the agent decision-making role played by different AI algorithmic decision autonomy on consumer purchase decisions. The results of the 3 studies indicate that algorithmic decision autonomy has an inverted U-shaped effect on consumer's purchase decisions, consumer's self-efficacy mediates the relationship between algorithmic decision autonomy and purchase decisions, and consumer's power distance moderates the relationship between algorithmic decision autonomy, self-efficacy, and purchase decisions. The research results can provide references for marketers, retailers, algorithm designers, and other parties to formulate algorithm marketing strategies, make AI algorithm decisions better serve consumers, and achieve value co-creation with consumers.

Keywords: AI algorithmic marketing; algorithm agent role; algorithmic decision autonomy; power distance; purchase decisions; self-efficacy.

Figure 1

Theoretical framework.

Figure 2

Inverted U-shaped curve fitting (Study 1).

Figure 3

Inverted U-shaped curve fitting (study 2).

Figure 4

Inverted U-shaped curve fitting (Study 3).

Figure 5

The moderating effect of power distance on self-efficacy.

Figure 6

The oderating effect of power distance on purchasing decisions.