Consumer Privacy Protection With the Growth of AI-Empowered Online Shopping Based on the Evolutionary Game Model.

Abstract

Social distancing due to the COVID-19 pandemic has driven some consumers to online shopping, and concerns about pandemic risks and personal hygiene have increased the demand for e-commerce. Providing personalized recommendations seems quite profitable for e-commerce platforms, and consumers also benefit from personalized content with the advancement of AI technologies. However, this possible win-win situation is marred by the increase in consumers' privacy concerns. Technical solutions have been widely studied to protect consumer privacy, while few analyses have been conducted from the perspective of psychological and behavioral implications. In this paper, an evolutionary game model of privacy protection between e-commerce platforms and consumers is established to determine the mechanisms by which various factors exert influence, and evolutionary stable strategies are obtained from equilibrium points. Then, the strategy selections are simulated with MATLAB 2020 software. Based on the results, the following conclusions are drawn: (1) the application of AI technologies in e-commerce will fundamentally benefit consumers, which makes them actively share personal information with e-commerce platforms with incentives for generous rewards; (2) it is profitable for e-commerce platforms to conduct data mining by improving the ability to use AI technologies and making efforts to reduce technical costs; and (3) regulators should improve the level of supervision instead of imposing a large penalty to enhance consumer trust, which could effectively increase the profits of e-commerce platforms and protect consumers' privacy.