Unraveling the Paradox: Balancing Personalization and Privacy in AI-Driven Technologies : Exploring Personal Information Disclosure Behavior to AI Voice Assistants and Recommendation Systems

Sammanfattning: As society progresses towards a more algorithmic era, the influence of artificial intelligence (AI) is driving a revolution in the digital landscape. At its core, AI applications aim to engage customers by providing carefully tailored and data-driven personalization and customization of products, services, and marketing mix elements. However, the adoption of AI, while promising enhanced personalization, poses challenges due to the increased collection, analysis, and control of consumer data by technology owners. Consequently, concerns over data privacy have emerged as a primary consideration for individuals. This paper delves deeper into the implications of the personalization- privacy paradox, aiming to provide a comprehensive analysis of the challenges and opportunities it presents. The purpose of this thesis is to understand users’ privacy concerns and willingness to disclose their personal information to AI technologies by addressing the limitations of previous research and utilizing qualitative methods to gain a more in-depth understanding of consumer views. To understand users’ privacy concerns and willingness to disclose personal information to AI technologies, a qualitative approach was followed. Combining a deductive and inductive approach to fulfill the purpose of the study, empirical data was collected through 20 semi- structured interviews. The participants were chosen using a purposive sampling technique. Users’ privacy concerns and willingness to disclose personal information to AI technologies differ significantly. It depends not only on the individual, but also on the type of AI technology, the company providing the AI technology, the possibility of obtaining additional benefits, and whether the company is transparent about its data collection and can provide proof of security.