The power of GenAI nudges

Abstract

Generative Artificial Intelligence (GenAI) is reshaping consumer interactions by offering personalized guidance that ranges from broad suggestions to narrow recommendations. Yet, little is known about how these interactions influence decision-making and consumer empowerment. This research investigates how distinct types of GenAI nudges (narrow vs. broad) shape goal desirability and, in turn, consumer empowerment. Drawing upon Construal Level Theory (CLT), Goal Pursuit Theory, and Nudging Theory, we examine whether narrow (vs. broad) GenAI nudges enhance consumers' sense of empowerment by increasing goal desirability. Three mixed-method studies (one qualitative and two experimental) reveal that narrow GenAI nudges significantly heighten goal desirability, leading to greater consumer empowerment and key behavioral outcomes, including satisfaction, repurchase intentions, and advocacy (net promoter score). These findings advance theoretical perspectives on GenAI as a nudge for consumer decision-making and offer practical insights for designing AI systems that effectively guide consumer decisions within structured choice architectures.