Privacy concerns and willingness to adopt AI products: A cross-country randomized survey experiment
Jerg Gutmann,
Laura Brandimarte,
Gerd Muehlheusser and
Franziska Weber
No 83, ILE Working Paper Series from University of Hamburg, Institute of Law and Economics
Abstract:
We examine the trade-off between functionality and data privacy inherent in many AI products by conducting a randomized survey experiment with 1,734 participants from the US and several European countries. Participants' willingness to adopt a hypothetical, AI-enhanced app is measured under three sets of treatments: (i) installation defaults (opt-in vs. opt-out), (ii) salience of data privacy risks, and (iii) regulatory regimes with different levels of data protection. In addition, we study how the willingness to adopt depends on individual attitudes and preferences. We find no effect of defaults or salience, while a regulatory regime with stricter privacy protection increases the likelihood that the app is adopted. Finally, greater data privacy concerns, greater risk aversion, lower levels of trust, and greater skepticism toward AI are associated with a significantly lower willingness to adopt the app.
Keywords: Artificial intelligence; privacy concerns; randomized survey experiment; smart products; technology adoption (search for similar items in EconPapers)
JEL-codes: D80 D90 K24 L86 Z10 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-ain
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ilewps:83
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