Bridging the green divide: The role of AI-driven personalization in ethical consumer behavior

The challenge in sustainability is the green divide, the difference between consumers’ stated preferences in support of sustainability and their actual purchases. The green divide may be reduced through AI-driven approaches that builds affirmative associations with customer behaviors. The study surveyed 549 rural and urban consumers in India, to determine the relationship between AI personalization and the green divide. Survey responses were collected using offline and online methods, and the survey data were analysed using factor analysis and PLS-SEM. Survey results showed that AI personalization is associated with ethical consumerism, especially with ethically trained AI. Value orientation was also significant, as rural consumers from collectivist societies aligned more with an AI response that sponsored a social cause, while urban consumers from individualist societies aligned more with self-serving perspectives. The results suggested that to achieve SDG 12, differentiated AI solutions considering level of urbanization and individualism/collectivism of regions of India are necessary. The researchers employed Nudge Theory and Algorithmic Trust Theory to develop the Trust Bridge Hypothesis, predicting that trust is an antecedent of AI customization and ethical consumption. This is a response to challenge of India’s green divide, especially for retailers and policymakers utilizing delivery-oriented nudges.