Tag: AI Shopping

  • The Ethics of AI in E-Commerce: Transparency, Consent, and Bias

    Imagine you’re scrolling through a shopping app. A curated Look catches your eye. It’s stylish, affordable, and recommended “just for you.” Feels like magic, right? Now imagine if that magic came at the cost of your privacy, consent, or even fairness.

    As AI becomes deeply embedded in e-commerce—from personalization to pricing and fulfillment—it also raises serious ethical questions. How is your data used? Who decides what you see? Is the algorithm treating every user equally?

    This isn’t just a tech debate—it’s a trust issue.

    At Glance.com, we believe AI in e-commerce must be ethical by design. That means transparent data practices, user-informed consent, inclusive algorithms, and accountability at every layer.

    👉 Learn how AI ethics align with our broader intelligent commerce strategy: Explore the AI in E-Commerce Guide

    1. Why AI Ethics Matter in E-Commerce

    AI is invisible—but its impact isn’t.

    It influences:

    • What products you see

    • What price you pay

    • What content you trust

    • Whether you feel seen—or ignored

    Unethical AI can:

    • Profile users without their consent

    • Amplify cultural or gender bias in product targeting

    • Obscure decision logic behind credit offers or promotions

    • Create opaque personalization loops

    According to PwC, 84% of consumers say they will walk away from a brand that doesn’t prioritize transparency and fairness in its AI systems.1

    E-commerce isn’t just about selling. It’s about shaping digital behavior. And that gives platforms an ethical responsibility to get it right.

    2. Transparency: Making the Algorithm Understandable

    What is the algorithm doing? Why did it recommend this Look and not that one? Did a user’s price change based on location, past clicks, or something more problematic?

    AI doesn’t need to be a black box.

    Transparency means:

    • Showing users why they’re seeing specific recommendations

    • Disclosing use of AI in personalization or credit scoring

    • Explaining pricing or promotion logic

    • Letting users opt out of algorithmic filtering

    At Glance, we aim to offer “Why this Look?” insights—so users understand that recommendations are based on style preferences, saved Looks, and product interactions.

    The EU AI Act emphasizes the need for explainability in consumer-facing AI tools—especially in sensitive areas like credit, pricing, and identity modeling.2

    Transparency builds trust—and trust builds loyalty.

    3. Consent: Asking Before Personalizing

    Users shouldn’t be tracked without knowing it. And they shouldn’t have to dig through five pages of legalese to understand what’s being collected.

    Ethical AI demands clear, upfront consent.

    That means:

    • Explicit opt-ins for data collection, styling profiles, or personalization features

    • Layered consent (e.g., separate opt-ins for AI Looks vs. predictive pricing)

    • The ability to revoke consent easily

    • Providing value in exchange for consent—like better recommendations or faster checkout

    At Glance, users must actively consent to uploading selfies, generating AI Looks, or storing styling preferences. No facial recognition, no hidden profiling.

    Cisco’s 2023 Privacy Benchmark Report found that 94% of users expect brands to be transparent about AI data usage, and 76% say they won’t share data without clear benefit.3

    Consent isn’t just legal. It’s relational.

    4. Bias in Algorithms: Who Gets Seen, What Gets Sold

    AI models are only as unbiased as the data they’re trained on.

    Common sources of bias include:

    • Underrepresentation of certain body types or skin tones in visual AI

    • Prioritizing products based on assumed gender roles

    • Socioeconomic targeting that reinforces inequality

    • Cultural stereotypes in recommendations

    For example, if a system sees that certain demographics engage more with high-value items, it might unfairly deprioritize budget-friendly options for others.

    At Glance, our AI Look generation is trained on diverse body types, skin tones, and style identities—ensuring representation across the scroll.

    MIT Media Lab found that facial recognition tools had up to 34% error rates on darker-skinned women, compared to 1% for lighter-skinned men—showing how bias can invisibly shape digital outcomes.4

    Fairness is not automatic. It must be intentionally coded.

    5. Pricing Ethics and AI-Driven Discrimination

    AI can customize prices—but should it?

    While dynamic pricing improves business efficiency, it risks becoming discriminatory when based on:

    • Location and ZIP code profiling

    • Device used (e.g., higher prices for iPhone users)

    • Predicted urgency or intent

    • Inferred income based on past purchases

    Ethical pricing practices mean:

    • No hidden discrimination

    • No manipulation of need-based shoppers

    • Transparent explanation for personalized offers or discounts

    At Glance, pricing is uniform unless explicitly tied to visible campaigns or opt-in loyalty behavior—never inferred user worth.

    A Brookings study warns that algorithmic pricing without guardrails can exacerbate economic inequality—especially in regions with poor digital literacy.5

    Personalization should feel like empowerment—not exploitation.

    6. Data Privacy and Long-Term Profiling

    Just because you can store data forever, doesn’t mean you should.

    Ethical AI in e-commerce includes:

    • Minimal data retention for behavioral modeling

    • Deletion timelines aligned with usage value

    • Zero sale or trade of personal data

    • Regular audits of data footprint per user

    Glance practices minimal data retention. If a user hasn’t interacted with their profile in 90 days, styling preferences are archived. Selfies used for AI avatars are deleted unless consent is renewed.

    India’s Digital Personal Data Protection Act (DPDPA) mandates purpose limitation, data minimization, and user control over AI use of personal data.6

    Data belongs to the user. Brands are just trusted stewards.

    7. Accountability and Human-in-the-Loop Design

    No AI is perfect. That’s why humans must stay involved.

    Accountable AI means:

    • Audit trails for algorithmic decisions

    • Human override for complex or sensitive issues

    • Channels for user appeals or challenges

    • Feedback loops to improve models over time

    Glance uses human moderation for all flagged Looks, reviews, or style prompts—especially when behavior seems algorithmically questionable.

    Google’s AI Principles state that all AI systems should be subject to meaningful human direction and review—especially in areas involving user rights or well-being.7

    Automation without accountability is not efficiency. It’s abdication.

    Conclusion: Designing AI for Trust, Not Just Conversion

    AI can do amazing things in e-commerce. It can recommend, optimize, personalize, and scale. But it must do these things with transparency, consent, fairness, and empathy.

    At Glance.com, we see ethical AI not as a checkbox—but as our foundation. It’s how we build trust, inspire loyalty, and ensure that innovation serves everyone, not just the few.

    👉 Want to explore how ethical AI connects to personalization, discovery, returns, and immersive shopping? Dive into the AI in E-Commerce Guide

    Because the future of commerce isn’t just smarter. It’s more human.

    Footnotes

    1. https://www.pwc.com/us/en/services/consulting/library/consumer-intelligence-series/artificial-intelligence.html

    2. https://digital-strategy.ec.europa.eu/en/policies/european-approach-artificial-intelligence

    3. https://www.cisco.com/c/en/us/about/newsroom/newsroom-presskit/privacy-benchmark-study-2023.html

    4. https://www.media.mit.edu/projects/gender-shades/overview/

    5. https://www.brookings.edu/articles/how-algorithms-can-lead-to-unfair-pricing-in-e-commerce/

    6. https://www.meity.gov.in/writereaddata/files/Draft_DPDP_Bill_2022.pdf

    7. https://ai.google/principles/