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Published on: November 9, 2019
AI Personalization and Its Influence on Online Gamblers' Behavior
Florin Mihai1, Ofelia Ema Aleca1, Daniel-Marius Iordache1
1Management Information Systems Department, Faculty of Accounting and Management Information Systems, Bucharest University of Economic Studies, 010552 Bucharest, Romania.
Algorithmic personalization on gambling sites may influence user behavior, affecting risk perception and betting persistence. Changes in user behavior suggest evolving personalization dynamics, raising ethical and regulatory questions.
Area of Science:
- Behavioral economics
- Digital technology
- Gambling studies
Background:
- Algorithmic personalization is increasingly prevalent on online gambling platforms.
- Technological advancements may influence user cognitive and motivational processes related to gambling behavior.
Purpose of the Study:
- To explore how algorithmic personalization, potentially including AI, affects user behavior on online gambling platforms.
- To examine changes in risk perception, decision-making, and betting persistence in relation to personalization dynamics.
Main Methods:
- Utilized ordinary least squares (OLS) and panel regression models on behavioral data from a gambling platform.
- Conducted temporal comparisons of user behavior between 2016 and 2021 to infer personalization effects.
- Interpreted behavioral changes as indicative of evolving personalization dynamics, acknowledging the absence of direct AI intervention metadata.
Main Results:
- Users receiving personalized bonuses or making early cash-out decisions exhibited systematic adjustments in stake sizes and betting frequency.
- Observed behavioral patterns suggest potential indirect effects of technological reinforcement strategies.
- Identified changes in user behavior indicative of evolving personalization dynamics over time.
Conclusions:
- Algorithmic personalization may indirectly influence gambling behavior, leading to systematic adjustments in betting patterns.
- Findings raise significant ethical and regulatory concerns regarding user autonomy, algorithmic transparency, and protection for at-risk gamblers.
- Further research with experimental and log-level data is recommended to precisely analyze algorithmic effects and develop responsible gambling strategies.
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