The double-edged razor of machine learning algorithms in marketing : benefits vs. ethical concerns

New advancements in artificial intelligence algorithms contribute to the competitiveness of businesses. However, the increasing use of machine learning algorithms for analyzing customer data in marketing is frequently accompanied by ethical concerns. By using rule utilitarianism theory, the following research aspires to develop guidelines by which machine learning algorithms can create and capture value within the ethical boundaries of customer segmentation and targeting. To accomplish this goal, AI algorithms’ benefits and ethical risks are analyzed through a systematic literature review, followed by semi-structured interviews with practitioners and academic researchers. By combining the theoretical and practical insights a total of 4 ethical issues was found, which can be mitigated through 40 guidelines, divided into 6 stakeholder groups. Hence, the model can serve as a framework for ethical marketing and design practices. Because of the fast-changing nature of AI technologies, the exploration of ethics and AI will be a continuous topic, and the outlined guidelines can serve as a starting point for future research.