Consumer Law as a Tool to Regulate Artificial Intelligence

Abstract

Ongoing digital transformation combined with artificial intelligence (AI) brings serious advantages to society. Transactional opportunities knock: optimal energy use, fully autonomous machines, electronic banking, medical analysis, constant access to digital platforms. Society at large is embracing the latest wave of AI applications as being one of the most transformative forces of our time. Two developments contribute to the rise of the algorithmic society: (1) the possibilities resulting from technological advances in machine learning, and (2) the availability of data analysis using algorithms. Where the aim is to promote competitive data markets, the question arises of what benefits or harm can be brought to private individuals. Some are concerned about human dignity. They believe that human dignity may be threatened by digital traders who demonstrate an insatiable hunger for data.Through algorithms the traders may predict, anticipate and regulate future private individual, specifically consumer, behaviour. Data assembly forms part of reciprocal transactions, where these data are currency. With the deployment of AI, traders can exclude uncertainty from the automated transaction processes. The equality gap in the employment of technology to automated transactions begs the question of whether the private individual’s fundamental rights are warranted adequately. Prima facie, the consumer stands weak when she is subjected to automatic processes – no matter if it concerns day-to-day transactions, like boarding