Risks brought by artificial intelligence assistants -Part 1

Si Gyeongmin

Sep 21, 2021

Dominant digital intermediaries may exercise monopoly power or threaten consumer protection. This hazard can be solved through more micro-level governance of artificial intelligence assistants. But a series of more general risks (many of which require a more macro perspective) may stem from how artificial intelligence assistants change the market and business structure.

1. Super conversion as a new form of destruction

Artificial intelligence assistants may suddenly suggest that a large number of consumers switch to new businesses for three main reasons. The first is lower prices. Competitors may always try to make prices drop. The first reaction of many sellers is to give up profits and seize the market. However, the seller's response may not be timely. At this time, the artificial intelligence assistant will persuade the customer to leave. The second factor is more attractive products. Innovation can occur in small increments and subtle changes, such as creating a battery that lasts longer. Finally, artificial intelligence assistants may have their own selfish hearts. For example, for the same products of two companies, the artificial intelligence assistant will give priority to recommending companies that have paid more for advertising.