The dark side of artificial intelligence in service: The watching-eye effect and privacy concerns

The potential privacy issues associated with artificial intelligence (AI) in service delivery require careful attention but remain understudied. Through the lens of the watching-eye effect, this research examines the impact of AI on customers' uneasiness through the mediation of privacy concerns. Study 1 confirms the watching camera eye effect of AI devices. Moreover, it identifies the service setting as a contextual boundary condition, wherein this effect holds in a private setting but not in a public setting. Study 2 further indicates that when there is a built-in camera, the physical eye in an AI device matters; humanoid AI devices trigger stronger privacy concerns than nonhumanoid AI devices and tablets, leading to greater uneasiness. This impact affects both genders but is more pronounced among women. This research extends the AI literature in service and business ethics and offers insight into managing personal information and privacy issues effectively.

Automated summary

This research examines the potential privacy issues associated with AI in service delivery and finds that the watching-eye effect of AI devices exists, with stronger privacy concerns and uneasiness triggered by humanoid AI devices. The impact is more pronounced among women. This study extends the literature on AI in service and business ethics and provides insight into managing personal information and privacy issues effectively.