When AI Decides with Me: The Delegation-Overreach Paradox in AI-Mediated Smartphone Purchases

Abstract

As artificial intelligence (AI) becomes involved in an increasing number of consumers’ buying choices, the role of AI in consumption patterns transforms from a recommending agent to a decision-making partner. The study explores the influence of AI Decision Delegation on Customer Advocacy through the mediation of Perceived AI–Customer Decision Partnership and focuses on the role of AI Autonomy Expectation and Algorithmic Overreach as moderators. Exploratory research has been conducted among Generation Z customers to operationalize the effect of the delegation in the smartphone and technology market. A quantitative, cross-sectional method was implemented to collect and analyze data from approximately 378 participants. The analysis was carried out in SmartPLS 4 using the PLS-SEM technique and bootstrapping procedure to evaluate direct, mediating, moderating, and conditional indirect effects. The results demonstrate that AI Decision Delegation positively affects customers’ perception of AI as a decision-making partner, which, in turn, drives Customer Advocacy. The study found the strongest support for the mediating role of Perceived AI–Customer Decision Partnership, suggesting that the relationship between AI Decision Delegation and Customer Advocacy was established due to increased advocacy stemming from the perception of delegation as a shared AI–customer decision-making process. Moreover, the first-order moderation effect of AI Autonomy Expectation was found to strengthen the mediation process, while the effect of Algorithmic Overreach was negative. The Delegation–Overreach Paradox was identified as a second-order interaction between the two first-order moderators that showed consumer expectations of AI autonomy to handle complex decisions but in circumstances where AI does not take responsibility for outcomes. This article adds to the understanding of AI marketing by reconceptualizing consumer–AI relationships around shared decision-making processes and advocating for the necessity of empowering consumers to influence AI decisions as a key to cultivating long-term Customer Advocacy. The results have implications for marketers who should consider AI Decision Delegation as an element of the decision-making process that empowers consumers and transforms AI-driven buying experiences into memorable moments.

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