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Paper ID:IJSREM32976

Rights of Consumer and Artificial Intelligence

Stream/Area:

-

Subject:

-

Paper ID:

IJSREM32976

Volume:

8 |

5 |

May 2024

Pages:

1-11

Publication Frequency:

Monthly (12 issues per year)

DOI
Digital Object Identifier
10.55041/IJSREM32976

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Siddhant Kondarwar

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VK

Vinod Kumar

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Abstract

The rapid development of artificial intelligence (AI) technologies in the early 21st century has significantly impacted consumer rights and protections. As AI systems have become more integrated into various products and services, new challenges have arisen concerning privacy, transparency and accountability. This paper will explore the key intersections between AI and consumer rights, the regulatory and policy responses that have emerged and considerations for the future. Over the past two decades, the rapid advancements in AI have profoundly and broadly affected the consumer landscape. AI-powered technologies are now deeply embedded in numerous products and services, transforming how consumers engage with the digital world. While these innovations have brought considerable benefits in terms of convenience, personalization and efficiency, they have also introduced new challenges and risks related to privacy, transparency and accountability. As AI systems have become more prevalent and influential in consumers’ daily lives, policymakers, regulators and consumer advocates face the challenge of establishing appropriate safeguards and protections. This paper provides a comprehensive examination of the key intersections between AI and consumer rights, the regulatory and policy responses that have emerged and the ongoing debates and considerations for the future. The proliferation of artificial intelligence in the consumer sphere can be traced back to the early 2000s, when breakthroughs in machine learning and the availability of large datasets led to rapid advancements in areas such as natural language processing, computer vision and predictive analytics. These AI-powered capabilities have since been integrated into a wide range of consumer products and services, transforming how people shop, communicate, entertain themselves and manage their daily lives. The integration of AI into consumer products and services has brought about significant changes in various aspects of daily life. From personalized product recommendations in e-commerce platforms to voice-activated virtual assistants in smart homes, AI has become an integral part of the consumer experience. This technological revolution has also extended to areas such as financial services, healthcare and transportation, where AI algorithms are used to assess credit risks, diagnose medical conditions and optimize travel routes. As these AI-driven systems continue to evolve and become more sophisticated, they have the potential to offer unprecedented levels of convenience, efficiency and personalization to consumers. However, the widespread adoption of AI in consumer-facing applications has also raised important questions about privacy, data protection, algorithmic bias and transparency. Concerns have emerged regarding the collection and use of personal data by AI systems, the potential for discriminatory outcomes in automated decision-making processes and the lack of explainability in complex AI algorithms. These issues have prompted policymakers and regulators to consider new frameworks and guidelines to ensure that consumer rights are adequately protected in the age of AI. As the technology continues to advance, striking the right balance between fostering innovation and safeguarding consumer interests remains a critical challenge for stakeholders across the public and private sectors.

KEYWORDS

artificial intelligence (AI) financial services healthcare and transportation

Cite This Article

Siddhant Kondarwar, Vinod Kumar, "Rights of Consumer and Artificial Intelligence," International Journal of Scientific Research in Engineering and Management, vol. 8, no. 5, pp. 1-11, May 2024. https://doi.org/10.55041/IJSREM32976

Full Article/Conclusion

The rapid rise of artificial intelligence has profoundly impacted consumer rights, bringing both significant benefits and new risks and challenges. As AI becomes more deeply integrated into our daily lives, ensuring strong consumer protections and rights has never been more urgent. Policymakers, regulators, industry and consumer advocates must collaborate to develop comprehensive and adaptive approaches to governing AI use in a way that fosters innovation while safeguarding consumer interests. This requires a multifaceted strategy addressing key consumer rights considerations, including privacy, transparency, fairness, safety and consumer autonomy. By striking the right balance, we can unlock AI’s tremendous potential in serving consumers while maintaining their trust, agency and fundamental rights. Achieving this goal is critical not only for protecting individual consumers but also for preserving the integrity and legitimacy of the AI-powered digital economy as a whole. The path forward will not be easy, as the challenges posed by AI are complex and ever-evolving. However, by embracing a collaborative, forward-thinking and consumer-centric approach, we can ensure that continued advancements in artificial intelligence enhance rather than diminish consumer rights and well-being. Policymakers, regulators, industry and consumer advocates must work together to develop holistic and adaptive approaches to governing AI use in a way that fosters innovation while safeguarding consumer interests. This will require ongoing dialogue, research and a willingness to continuously revisit and refine AI governance frameworks. Ultimately, the goal should be to harness AI’s power in service of consumers while maintaining their trust, autonomy and fundamental rights. By getting the balance right, we can unlock the tremendous potential of this transformative technology while ensuring it remains aligned with the needs and values of the people it is intended to serve. Ongoing education and awareness initiatives will be crucial to empower consumers to make informed decisions about AI-powered products and services. Robust mechanisms for accountability and redress must be established to address instances of AI-related harm or rights violations. As AI continues to evolve, maintaining a flexible and adaptive regulatory approach will be essential to keep pace with emerging challenges and opportunities.[1] The rapid rise of artificial intelligence has significantly impacted consumer rights, presenting both opportunities and challenges. As AI becomes increasingly integrated into daily life, it is crucial to establish robust consumer protections. This requires a collaborative effort from policymakers, regulators, industry leaders and consumer advocates to develop comprehensive governance strategies that promote innovation while safeguarding consumer interests. Key considerations include privacy, transparency, fairness, safety and consumer autonomy. Striking the right balance is essential not only for protecting individual consumers but also for maintaining the integrity of the AI-driven digital economy. The complexity and evolving nature of AI-related challenges necessitate a multifaceted approach. This includes developing adaptive regulatory frameworks, promoting industry self-regulation, enhancing consumer education and fostering ongoing dialogue between stakeholders. Transparency in AI decision-making processes, ensuring algorithmic fairness and protecting consumer data privacy are critical areas that require attention. Additionally, mechanisms must be put in place to address potential AI biases and ensure that consumers retain meaningful control over their interactions with AI systems. By adopting a forward-thinking, consumer-centric approach, we can harness the benefits of AI while mitigating risks and preserving fundamental consumer rights in an increasingly AI-driven world.  

References

* Ph.D. Scholar, Department of  Law, Shri Jagadish Prasad Jhabarmal Tibrewala University, Jhunjhunu, Rajasthan. ♯ Assistant Professor, Department of  Law, Shri Jagadish Prasad Jhabarmal Tibrewala University, Jhunjhunu, Rajasthan. [1] Karwatzki, S., Dytynko, O., Trenz, M., & Veit, D. (2017). Beyond the Personalization–Privacy Paradox: Privacy Valuation, Transparency Features, and Service Personalization. Journal of Management Information Systems, 34(2), 369–400. https://doi.org/10.1080/07421222.2017.1334467 [1] Cook, S., & Chambers, E. (2009). What Helps and Hinders People with Psychotic Conditions Doing What They Want in Their Daily Lives. British Journal of Occupational Therapy, 72(6), 238–248. https://doi.org/10.1177/030802260907200602 [1] Bell, C., Broklyn, P., & Olukemi, A. (2023). AI-Driven Personalization in Digital Marketing: Effectiveness and Ethical Considerations. Mdpi Ag. https://doi.org/10.20944/preprints202408.0023.v1 [1] Zhu, W., Wang, F., & Chen, H. (2022). Research on Algorithm Consumers’ Attitudes Toward the Use of Personal Information. Advances in Economics and Management Research, 1(2), 294. https://doi.org/10.56028/aemr.1.2.294 [1] Kumar, D. A., & Dadhich, D. H. (2024). REGULATORY FRAMEWORKS FOR ARTIFICIAL INTELLIGENCE IN LAW: ENSURING ACCOUNTABILITY AND FAIRNESS. NUJS Journal of Regulatory Studies, 9(2). https://doi.org/10.69953/njrs.v9i2.7 [1] Hay, B., & Spier, K. E. (2005). Manufacturer Liability for Harms Caused by Consumers to Others. American Economic Review, 95(5), 1700–1711. https://doi.org/10.1257/000282805775014416 [1] Kakarala, M., & Rongali, S. (2025). Existing challenges in ethical AI: Addressing algorithmic bias, transparency, accountability and regulatory compliance. World Journal of Advanced Research and Reviews, 25(3), 549–554. https://doi.org/10.30574/wjarr.2025.25.3.0554

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Publication Date

6/16/2026

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