University of Twente Student Theses


Unintended outcomes of artificial intelligence in online advertising

Dijk, Lotte van (2023) Unintended outcomes of artificial intelligence in online advertising.

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Abstract:Advertisers increasingly employ Artificial Intelligence (AI) applications within online advertising to create and monitor ads, formulate strategic marketing decisions based on a large amount of customer data and accurately target their customers. It saves time and money and creates a competitive advantage. However, the application of AI within online advertising can sometimes lead to unintended outcomes. Therefore, the European Commission (EC) has issued the Artificial Intelligence Regulation Proposal, known as ‘the AI Act’, to mitigate harmful AI. This thesis seeks to comprehend the company’s viewpoint on employing AI and facing new laws and regulations. Furthermore, it describes mitigation methods to prevent unintended outcomes and includes a review of adopted and proposed laws and regulations. Finally, a checklist is compiled for companies applying AI within their online advertising campaigns to prevent them from creating harmful unintended outcomes. This thesis achieved these contributions by conducting two studies: 1) a case study on Facebook as an AI-driven advertising platform and 2) in-depth interviews about the application of AI in online advertising, unintended outcomes and viewpoint on the AI Act, including 18 participants. The findings result in an overview of how companies employ AI in online advertising. Furthermore, it identifies the advantages, disadvantages, opportunities and threats of applying AI in online advertising from a company’s viewpoint. It identifies the potential causes of unintended outcomes and describes mitigation methods to prevent these outcomes from happening. This thesis combines its findings into a checklist for companies applying AI in advertising without creating harmful unintended outcomes.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science, 86 law
Programme:Business Administration MSc (60644)
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