A new study from Columbia Law School has found that artificial intelligence shopping agents operated by Amazon and Walmart systematically deprioritize American-made goods in search results.
The research indicates that the algorithms favor lower-cost imports, effectively hiding domestic products from consumers even when they are explicitly seeking "Made in USA" items.
The study further alleges that the AI systems enable false origin claims, with the platforms admitting the bias is a deliberate business choice to maximize margins.
The findings add significant weight to the growing regulatory and legal pressure on major retailers regarding their use of artificial intelligence.
The revelation that these algorithms are "rigged" against domestic manufacturing could trigger fresh scrutiny from US lawmakers and consumer protection agencies, who have been increasingly concerned about the transparency of AI-driven commerce.
For investors, the report highlights a material reputational and compliance risk for both Amazon and Walmart as the debate over fair trade and algorithmic accountability intensifies.