Abstract
The rapid proliferation of Generative Artificial Intelligence (GenAI) is fundamentally reshaping the landscape of consumer decision-making by providing unprecedented levels of personalized information. However, the inherent complexity and potential for AI hallucinations introduce significant cognitive challenges that may undermine decision quality. Grounded in Information Processing Theory (IPT), this study investigates the mechanism through which GenAI literacy influences consumer decision quality, specifically focusing on the mediating role of perceived information overload and the moderating role of consumer involvement. Through a structured survey of 401 Chinese college students and subsequent structural equation modeling (SEM) analysis, the empirical results demonstrate that GenAI literacy is directly and positively associated with decision quality. Furthermore, perceived information overload serves as a critical mediator, indicating that high levels of GenAI literacy could reduce cognitive friction and prevent decision paralysis. Notably, the continuous latent interaction analysis reveals that consumer involvement significantly moderates the relationship between GenAI literacy and perceived information overload, with the inhibitory effect of literacy being more pronounced in high-involvement scenarios. These findings extend the application of IPT to the era of human-AI symbiosis and offer actionable insights for policymakers and enterprises to optimize the digital consumption ecosystem.
Recommended Citation
Wen, He-Ran; Guo, Yi-Ming; and Feng, Ze-Long, "The Impact of GenAI Literacy on Consumer Decision-Making: A Moderated Mediation Model of Information Overload and Consumer Involvement" (2026). ICEB 2026 Proceedings (Beijing, China). 105.
https://aisel.aisnet.org/iceb2026/105