ABSTRACT
The digital economy is experiencing an unprecedented phase of transformation, driven by the relentless evolution of artificial intelligence (AI) and the Internet of Things (IoT). These technologies have transcended from being mere tools of convenience to becoming integral components of daily life, ushering in an era of consumer cyborgification, where humans increasingly merge with technology, both physically through wearable devices and cognitively through AI-driven insights and nudges. By collecting, analysing, and acting upon enormous volumes of personal data, these technologies tailor services and enhance user experiences, but also raise profound concerns about privacy, autonomy, and consumer rights. The potential for misuse or overreach in data handling poses threats to individual privacy, while the autonomous decision-making aspects of AI challenge traditional notions of consumer autonomy. Yet, there is a silver lining. AI presents significant opportunities to guide consumers towards more informed, healthier, or economically beneficial choices. Through strategic nudging, AI can enhance consumer well-being, leading to a more efficient market where consumers are not only protected but empowered. However, the integration of such technologies calls for a re-evaluation of existing regulatory frameworks to ensure that they are fit for purpose in this new digital landscape. This paper examines how current AI and consumer protection regulations can be adapted to meet these challenges. The objective is to propose frameworks where technological advancement and consumer protection can coexist synergistically. We aim to explore how laws can be refined to safeguard privacy and autonomy without stifling the innovation that drives economic and social benefits.
Scattarreggia, Emanuele, Protecting Consumers and the Market in the Cyborg Era. Posted to SSRN 13 September 2025.
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