Too Smart to Trust? Algorithmic Intelligence and the Erosion of Consumer Autonomy

As algorithmic intelligence becomes increasingly sophisticated, consumers may perceive not empowerment but erosion of autonomy. This research introduces Algorithmic Autonomy Erosion (AAE) as a distinct psychological mechanism explaining why highly intelligent AI systems can undermine trust. Across three studies a scale development, a controlled experiment, and a large-scale-survey results demonstrate that perceived algorithmic intelligence reduces trust indirectly through heightened autonomy erosion and subsequent psychological reactance. Evidence for a nonlinear effect is mixed. By shifting the focus from performance to perceived authorship displacement, this study advances theory on AI trust and consumer agency.