The Impact of Generative AI on Consumer Valuation in User-Design
(A2025-124513)

AUTHORS

Eva Pflanzer, LMU Munich School of Management; Martin Spann, LMU Munich School of Managment

ABSTRACT

Generative artificial intelligence (genAI) enables consumers to be more actively involved in the design of the products they consume. By extending user capabilities, genAI enables co-creation beyond the limits of traditional mass customization. However, little is known about how the integration of genAI affects consumer behavior in user-design, a strategy that has been shown to increase consumers' perceived product value by enhancing feelings of accomplishment. This research aims to investigate how AI augmentation of user-design processes influences the perceived value of self-designed items. In an online experiment comparing a user-design scenario with a genAI design tool to a traditional design tool, we find that AI augmentation negatively affects the subjective value of self-designed products. This effect is mediated by feelings of accomplishment that consumers can attribute to themselves. We conclude with theoretical and practical implications and suggestions for future research.