AI Shopping Assistants Can Make You Pay More, Study Finds

When you shop online, you might use an AI assistant to help you pick the best product. But a new study shows that these AI helpers can sometimes backfire. The researchers looked at two types of AI: one that recommends a shortlist of products, and another that picks the best product for you. Both know your preferences and can see all products, but they don't always lead to better deals.

The study found that when AI recommends products, it can actually make prices higher. For example, if the AI suggests a high-quality and a middle-quality product, the middle-quality firm might raise its price because it knows it's being compared to a higher-quality item. This can leave you paying more than if you had compared products yourself. In some cases, the AI's recommendation can even make you switch to a lower-quality product that costs less but isn't worth the savings.

The researchers call this an 'alignment paradox': even though the AI ranks products correctly and your top choice might get cheaper, you can still end up worse off. That's because the AI doesn't consider how your attention might be drawn to a lower price, leading you to overlook quality. The study also found that platforms might prefer AI designs that boost their profits, even if they don't benefit you.

So, while AI shopping assistants can be convenient, they're not always on your side. The study suggests that we need to be careful about how these tools are designed and used. For now, it's wise to double-check AI recommendations and consider the full picture before making a purchase.