Psychological Benefits and Costs of Diversifying Algorithmic Recourse

Abstract

Algorithmic recourse provides counterfactual action plans that help people overturn unfavorable AI decisions. While diverse recourse sets may improve transparency and motivation, they may also impose cognitive load and negative emotions by increasing counterfactual reasoning demands. To examine this trade-off, we conducted a between-subjects controlled experiment (N=750) that manipulated recourse-set diversity while controlling the number of options, and evaluated its effects on psychological benefits and costs. Results show that diversification enhances psychological benefits (e.g., willingness to act) for small sets without incurring additional psychological costs, whereas for large sets, it makes cognitive load more salient. These findings suggest that naively diversifying recourse can burden decision subjects, underscoring the need for new diversification methods that incorporate human cognition and psychology to mitigate such costs.