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Cultural relativity in consumers' rates of adoption of artificial intelligence
Author(s) -
Tubadji Annie,
Denney Toby,
Webber Don J.
Publication year - 2021
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/ecin.12978
Subject(s) - novelty , cultural intelligence , consumption (sociology) , marketing , economics , financial services , business , sociology , finance , social psychology , psychology , social science , management
Artificial intelligence (AI) is a cost‐efficient innovation that challenges customers' consumption patterns and fears of uncertainty. This study assesses whether the likelihood that consumers adopt AI in banking services depends on tastes across different cultures. We propose a culturally‐augmented Arrow–Bilir–Sorensen model to assess the propensity that consumers use AI. Analyses of a unique ING Bank dataset encompassing 11,000 respondents from 11 countries reveal that success rates for the diffusion of robo‐advisory financial services in retail banking vary substantially due to the cultural boundedness of choice. This bias seems to be associated with social capital rather than the fear of novelty.