Advances in AI and big data have revolutionized online platforms, offering personalized experiences that delight users. However, these innovations als

Big Data and Behavioral Manipulation: Insights from Daron Acemoglu, Ali Makhdoumi, Azarakhsh Malekian, Asuman Ozdaglar (2024) – Synaptic Gap

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2024-12-25 14:00:15

Advances in AI and big data have revolutionized online platforms, offering personalized experiences that delight users. However, these innovations also enable subtle forms of behavioral manipulation, where platforms exploit user biases for profit. The paper When Big Data Enables Behavioral Manipulation dives deep into this phenomenon, exploring the dynamics of “glossy” products and their impact on user welfare. This is a must-read for technologists grappling with the ethical and practical implications of AI-driven personalization.

When platforms use AI to exploit “glossiness”—attributes that make products seem more appealing than they are—users can be manipulated into choosing inferior products. While this benefits platforms, it often comes at the expense of user welfare.

“Behavioral manipulation harms users most when platforms exploit biases to promote glossy, low-quality products, eroding trust and reducing welfare.”