AI-driven Privacy Policy Optimisation for Sustainable Data Strategy
(A2025-125853)

AUTHORS

Ziqi Zhong, The London School of Economics and Political Science

ABSTRACT

We first develop an analytical model to investigate the impact of corporate privacy policies on consumers. The model reveals that when firms respond to consumers’ sensitivities, they can entice consumers to opt-in to their service by adopting a moderate data strategy, enhancing both firm profits and consumer surplus. Building on this insight, we build a comprehensive framework for measuring the effectiveness of privacy policies and a scalable AI-based assessment agent, PrivaAI. PrivaAI offers several key abilities, including revealing consumer preferences in data policies, generating industry reports, and providing actionable recommendations for firms to strategically personalise their sustainable data strategy.