Chatbots by business vis-à-vis consumers: A new form of power and information asymmetry

University of Latvia, Faculty of Law, 19 Raina Blvd, Riga, Latvia. Turiba University, Faculty of Law, 68 Graudu St., Riga, Latvia

^* Corresponding author: zn05003@edu.lu.lv

Abstract

Research background: The first notable early chatbots were created in the sixties, but the growing use of artificial intelligence (AI) has powered them significantly. Studies show that basically chatbots are created and used for purposes by government and business, mostly in consumer service and marketing. The new Proposal of the Artificial intelligence act aims to promote the uptake of AI and address the risks associated with certain uses of such technology. However, the act contains only minimum transparency obligation for some specific AL systems such as chatbots.

Purpose of the article: In light of this issue, the article aims to discuss how existing European Union (EU) consumer law is equipped to deal with situations in which the use of chatbots can pose the risks of manipulation, aggressive commercial practices, intrusion into privacy, exploitation of a consumer’s vulnerabilities and algorithmic decision making based on biased or discriminatory results.

Methods: The article will analyse the legal framework, compare guidance documents and countries’ experiences, study results of different consumer behavior researches and scientific articles.

Findings & Value added: The article reveals several gaps in current EU consumer law and discusses the flaws of proposing legislation (particularly the Proposal for an Artificial intelligence act) regarding relations between business and consumers.