AI in Behavioral Economics and Decision-Making Analysis

Poonam Ajit Ghule

doi:10.55544/jrasb.4.1.15

Authors

Poonam Ajit Ghule Department of Computer Studies and Research, Symbiosis Institute of Computer and Research Center, Symbiosis International (Deemed University), Pune, INDIA

DOI:

https://doi.org/10.55544/jrasb.4.1.15

Keywords:

Artificial Intelligence, Behavioral Economics, Decision-Making, Consumer Behavior, AI Ethics, Algorithmic Bias, Data Privacy

Abstract

Artificial Intelligence (AI) have greatly transformed the science of Behavioural Economics and decision-making in applications predominantly on digital marketplaces, finance among others. Research examines the AI impact on consumer decision making, pricing and financial decision making with a specific emphasis on the Indian e-cockpit and fin-tech. By utilizing AI-driven recommendation systems, dynamic pricing models, and behavioral nudging techniques, businesses can enhance user engagement and optimize sales. The research examines Flipkart’s AI-powered recommendation system as a case study, revealing that AI-driven personalization has led to a 25% increase in sales and a 30% rise in user engagement. However algorithmic bias, data privacy and transparency ethical aspects are formidable challenges. Results show that AI tracking users with 58% of the user’s express worries about this algorithmic bias in financial decisions and access to loans/investment opportunities Even this study brings to light the requirements for human interpretability of AI models, stronger data privacy laws and ethically-grounded implementation of responsible AI. The next step for future research should be devising an explainable AI infrastructure that maintains technological advancement through fairness, transparency and user power.

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