The FOMO Effect: How AI Recommendations Drive Consumer Dependence and Weaken Brand‐Self Connections

ABSTRACT AI (Artificial Intelligence) based product recommendation systems are now central to e‐commerce and are widely adopted to personalize the shopping experience. While prior research emphasizes their benefits, limited attention has been given to their potential adverse effects on consumer behavior. This study shifts the lens toward possible adverse implications of AI‐assisted decision‐making, specifically, diminished choice accountability, increased AI dependence, and weakened brand‐self connections. Using a mixed method approach involving qualitative interviews, a SEM study, and an experimental study, we test a model that identifies key factors contributing to these unintended outcomes of using AI‐based product recommendation systems. Additionally, our findings highlight the significant role that psychological motivations like FOMO (Fear of Missing Out) play in influencing AI adoption behavior. This understanding is vital for developing more effective and psychologically attuned AI systems that cater to the diverse vulnerabilities of consumers in digital contexts. Overall, our findings offer insights into how AI systems should balance efficiency with the preservation of consumer independence and meaningful brand relationships.