Accountable algorithms? The ethical implications of data-driven business models. (5th May 2020)

• Record Type: Journal Article
• Authors: Breidbach, Christoph F.; Maglio, Paul
• Is Part Of: Journal of service management. Volume 31:Number 2(2020)
• Page Start: 163
• Page End: 185
• Publication Date: 2020-05-05
• Subjects: AI -- Big data -- Business model -- Ethics; Service industries -- Management -- Periodicals; 658.005
• DOI: 10.1108/JOSM-03-2019-0073
• Languages: English
• ISSNs: 1757-5818

Abstract

Abstract : Purpose: The purpose of this study is to identify, analyze and explain the ethical implications that can result from the datafication of service. Design/methodology/approach: This study uses a midrange theorizing approach to integrate currently disconnected perspectives on technology-enabled service, data-driven business models, data ethics and business ethics to introduce a novel analytical framework centered on data-driven business models as the general metatheoretical unit of analysis. The authors then contextualize the framework using data-intensive insurance services. Findings: The resulting midrange theory offers new insights into how using machine learning, AI and big data sets can lead to unethical implications. Centered around 13 ethical challenges, this work outlines how data-driven business models redefine the value network, alter the roles of individual actors as cocreators of value, lead to the emergence of new data-driven value propositions, as well as novel revenue and cost models. Practical implications: Future research based on the framework can help guide practitioners to implement and use advanced analytics more effectively and ethically. Originality/value: At a time when future technological developments related to AI, machine learning or other forms of advanced data analytics are unpredictable, this study instigates a critical and timely discourse within the service research community about the ethical implications that can arise from the datafication of service by introducing much-needed theory and terminology.