Series/Report no.:
ITS 33rd European Conference 2025: "Digital innovation and transformation in uncertain times", Edinburgh, UK, 29th June – 1st July 2025
Abstract:
The digital economy is currently experiencing an unprecedented phase of transformation, driven by the relentless evolution of artificial intelligence (AI) and the Internet of Things (IoT). These technologies have transcended from being mere tools of convenience to becoming integral components of daily life, ushering in what can be described as the era of consumer cyborgification. This term captures the essence of how humans are increasingly merging with technology, not just physically through wearable devices but also in decision-making processes through AI-driven insights and nudges. As these technologies grow more sophisticated, they collect, analyse, and act upon enormous volumes of personal data. This capability, while beneficial in tailoring services and enhancing user experiences, simultaneously raises profound questions about privacy, autonomy, and consumer rights. The potential for misuse or overreach in data handling poses threats to individual privacy, while the autonomous decision-making aspects of AI challenge traditional notions of consumer autonomy. Yet, there is a silver lining. AI presents significant opportunities to guide consumers towards more informed, healthier, or economically beneficial choices. Through strategic nudging, AI can enhance consumer well-being, leading to a more efficient market where consumers are not only protected but empowered. However, the integration of such technologies calls for a re-evaluation of existing regulatory frameworks to ensure that they are fit for purpose in this new digital landscape. This paper delves into how current AI and consumer protection regulations can be adapted to meet these emerging challenges. The objective is to propose a framework where technological advancement and consumer protection can coexist synergistically. We aim to explore how laws can be refined to safeguard privacy and autonomy without stifling the innovation that drives economic and social benefits.