IIM Lucknow research calls for an ethical reset in AI-driven marketing

Mumbai: A new multi-institutional study involving faculty from Indian Institute of Management Lucknow argues that artificial intelligence in marketing must be governed by clearly articulated ethical frameworks if it is to deliver fair and sustainable outcomes.

The research, published in the American Business Review (an ABDC A-rated journal), examines how AI-led marketing practices affect consumers, firms and society—and why ethical design can no longer be treated as an afterthought. Drawing on established ethical theories, the authors contend that responsible AI use is central to equity, fairness and long-term business performance.

Rather than viewing AI as a neutral abstraction, the study grounds its analysis in real-world failures. The researchers point to Microsoft’s Tay chatbot, which absorbed and amplified toxic social biases when left unguided, and the Facebook–Cambridge Analytica episode, where AI-driven data analytics enabled large-scale privacy violations. Amazon’s now-discontinued AI recruitment tool—found to be biased against women—further illustrates how historical data can entrench inequity when deployed without safeguards. Taken together, these cases underline a core risk: without strong governance, AI systems can reproduce bias, undermine trust and erode social legitimacy.

Co-authored by Prof. Priyanka Sharma of IIM Lucknow along with Prof. V. Kumar (Brock University, Canada), Prof. Ashutosh Dixit (Cleveland State University, US) and Prof. Sudipendra Nath Roy (St. Cloud State University, US), the paper draws on utilitarianism, deontology, virtue ethics, ethics of care and contractarianism to build a structured lens for evaluating AI in contemporary marketing.

The study identifies five ethical fault lines that demand attention: monopolisation, privacy, corporate social responsibility, human rights and accountability. Through practical scenarios, the authors show how these issues emerge—and how they shape outcomes for consumers, companies and the wider public.

To address these risks, the researchers propose theory-driven solutions. These include advocating data democratisation to curb excessive market concentration; insisting on contextual, purpose-bound data use with clear communication to consumers; aligning AI deployment with international human rights standards to prevent discrimination and protect autonomy; and establishing robust governance mechanisms. Among the recommendations are clearer accountability structures, ethical review processes and institutional safeguards such as independent AI ombudspersons.

Speaking about the study, Prof. Priyanka Sharma said, “AI has become both indispensable and deeply challenging for firms. Thus, AI practices grounded in theories of Ethics such as Utilitarianism and Deontology can help businesses address issues of privacy, accountability, and corporate social responsibility in their marketing applications. Frameworks like data democratization and governance through AI ombudsperson are the key for responsible and equitable use of AI-driven marketing practices.”

By offering a principled framework for responsible AI in marketing, the research contributes to a growing global debate on how innovation can be balanced with ethical responsibility. The authors position their work as a guide for academics, practitioners and policymakers—and as a foundation for future research aimed at strengthening ethical AI adoption across markets.