Chapter 4: Linking Brand Authenticity and Automation: A Focus on Ethical Implications of AI in Retail Branding

This research investigates the ethical implications of integrating artificial intelligence (AI) in retail branding, a burgeoning trend in the digital era. The central focus is on the challenges of balancing brand authenticity with automation, a critical concern in modern marketing strategies. Drawing from established ethical AI frameworks, this study explores the ethical dimensions retailers encounter when implementing AI-driven branding practices and examines how AI influences brand authenticity through factors such as consciousness, longevity and self-empowerment. Through a thorough literature review and an online survey, it scrutinises ethical challenges linked to AI in retail branding, including transparency, fairness, privacy and accountability. Furthermore, this study identifies strategies for retailers to ethically leverage AI in branding, guided by insights from Foroudi and Palazzo. It aims to reveal how brands can responsibly use AI while maintaining ethical decision-making, thereby positively influencing brand authenticity. An exploration of customer perceptions towards AI-driven branding is also undertaken, focusing on expectations of transparency, fairness, privacy and accountability. The outcome equips retailers and industry professionals with insights and recommendations for ethically navigating AI-enabled retail branding. By addressing ethical concerns, the research advocates for responsible practices that uphold brand authenticity, build consumer trust and enhance customer experiences in an automated retail landscape.