The organisation AlgorithmWatch, a funding partner of the foundation since 2019, has been awarded the 2024 Federal Consumer Protection Prize. In this interview, Matthias Spielkamp, the NGO's executive director, explains where artificial intelligence can disadvantage people in their daily lives – and why the market power of the big tech companies can be dangerous for democracy.

Mr Spielkamp, algorithms suggest which film we could watch next and which is the shortest way to the subway. Many people find this particularly convenient. Recently, AlgorithmWatch was awarded the Consumer Protection Prize. At what point can artificial intelligence become a problem for consumers?

Matthias Spielkamp: The use of algorithms and AI in our daily lives can lead to real disadvantages for consumers. For example, someone may pay more interest on a loan because the automated calculation system applies a higher interest rate to certain postcode areas. Some companies try to influence purchasing decisions with the help of manipulative recommendation algorithms, known as ‘deep patterns’ that are not immediately recognisable – for example, when it is shown that ‘only 1 more left at this price’. Social media platforms are more likely to share content from women if they show more skin. The line between optimisation and discrimination is easily crossed.

Why should we as a society be concerned about this – and what can be done about it specifically?

Matthias Spielkamp: The business models of large tech companies are based on collecting as much data as possible about consumers, such as our likes, where we live or who we talk to frequently. This surveillance runs in the background, as do the algorithmic decision-making systems. For many people, the issue is therefore very abstract – even though it affects them directly. Surveillance is also increasing offline. Security authorities are increasingly using biometric video analysis in public spaces. We need more social debates about this role of algorithms and effective supervision that ensures transparency and protection against discrimination. And the better informed people are, the more likely we are to be able to exert pressure on companies and politicians to bring about change.

Many people are concerned that artificial intelligence is influencing election decisions – and thus our democracy. What is your advice for upcoming elections like the 2025 federal election in Germany?

Matthias Spielkamp: It's rather unlikely that AI-generated images or videos are so convincing that they change many voters' minds. Anyone who wants to spread lies online can do so without AI. Instead of jumping on the hype surrounding individual deepfake scandals, we should look at how the tech industry as a whole influences opinion-forming: only tech giants like Microsoft, Google and Meta can afford to bring AI models to market at all. These same companies own the social media platforms and search engines we depend on to access information and follow political debates. We are currently seeing tech companies incorporate AI features into more and more products, although they still cannot ensure that they do not spread false information about the elections. This market trend is dangerous for democracy and must be stopped.