Abstract

Artificial Intelligence (AI) is becoming a significant technology innovation and presents a great threat and risk of personal privacy information protection, such as big data and machine learning. AI technology enriches the content and increases the tension of users’ information privacy concerns. Hence, this study provides a dynamic process that co-evolution of privacy concerns, business ethics, and technology innovation. In addition, employing an empirical study, our study demonstrates the relationship between privacy concerns and users’ reactions and the role of institutional factors under the AI context. Specifically, privacy concerns have negative effects on users’ reactions (purchase Intention, self-information disclosure, and using facial-recognition intention), and two institutional factors (perceived institutional environment and perceived legal enforcement efficiency) play mediating effects on the relationship between privacy concern and user’s reactions. The research provides a co-evolution perspective to explain the privacy concerns and broadens the privacy research in the new context.

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