This research investigates the effectiveness of algorithmic nudging in decision-making, focusing on the impact of personality-based personalization on individuals and business.
While existing literature recognizes nudging’s efficacy, the role of digital technology in digital nudging remains underexplored. The study leverages ML/AI algorithms to tailor nudges based on individuals’ personality traits.
Three key issues are posed in the project: (1) the impact of personality-based personalization on digital nudging effectiveness, (2) the transformative role of AI algorithms in shaping experiences and business perspectives on nudging, and (3) how companies can measure and communicate the intangible value of algorithmic nudging as a strategic asset.
The project underscores digital nudging’s strategic importance, shaping consumer choices and creating brand identity. Specific objectives include analyzing AI algorithms in digital nudging, designing an algorithmic nudging tool, validating its applicability, empirically evaluating through an online field experiment, and disseminating results.
Expected outcomes include a literature review on AI-powered algorithmic nudging, design principles for a prototype, empirical insights, and understanding the intangible value for algorithmic nudges for businesses. The main part of the study – an online field experiment – focuses on cookie consent decisions, providing insights into the algorithmic nudging tool’s effectiveness across diverse populations.
This research contributes to the discourse on algorithmic nudging, providing insights for academics, practitioners, and businesses navigating evolving decision-making landscapes. The combination of personality-based personalization, AI algorithms, and algorithmic nudging is positioned as a transformative force in decision-making processes, with potential implications for business strategies and consumer interactions.