Why algo-driven FOMO is so toxic

I recently wrote an article about scarcity marketing and how not to overdo it.

And as I lay in bed at night, reflecting on the articles I’ve written (since, you know, every waking moment of mine is now consumed with marketing insights), I had an epiphany:

AI, and the art of hyper-personalised scarcity, is kind of toxic…

We’re living in the golden age of FOMO.

And predictive algorithms are now the gatekeepers of our desires, whispering, 'Get it before it’s gone' every time we scroll past a limited-edition product or exclusive experience.

Clever marketing? Yes. But it’s also a calculated psychological nudge designed to trigger that panicky, must-buy-now response.

Have you ever been fed a 'limited product drop' so damn hard on your feed that you give in to the algorithmic overlords and convert?

Have you ever felt the actual shakes afterwards out of sheer panic, FOMO, and straight adrenaline?

I feel like that’s kind of messed up when you think about it.

So the question is, are we crossing a line from smart engagement to unhealthy manipulation?

Scarcity marketing has been around forever.

However, AI has turned it into a whole art form. By analysing endless streams of data, algorithms predict what each individual consumer might want. Then, they use scarcity to make it irresistible.

How it works:

Personalised targeting: AI knows your favourite artist just announced a limited merch drop. Oh, and there are only 200 hoodies left. Better click fast.

Dynamic availability: Airbnb tells you that 'only 2 rentals remain' for that dream Parisian apartment. Conveniently, you’ve been eyeing Parisian vacations for weeks.

Urgency everywhere: From 'last-minute deals' on flights to Spotify’s 'act now or miss out' merch campaigns, AI ensures you’re always teetering on the edge of FOMO.

It’s brilliant. But it’s also EXHAUSTING.

At its core, scarcity taps into two very primal fears:

The fear of loss: We’re hardwired to hate losing out on opportunities, especially when we think they’re exclusive.

The need to belong: Limited drops and experiences create social currency—buying in lets us feel like part of an 'in' crowd.

When used sparingly, this strategy can create genuine excitement. But when everything feels urgent and exclusive, it starts to take a toll.

Especially in a world where everything, everywhere, is already a cause for concern.

And this leads to less-than-ideal outcomes, like:

Heightened anxiety: Constantly feeling like you’re missing out leads to decision fatigue, stress, and even buyer’s remorse.

Decreased trust: When scarcity feels artificial (e.g., 'only 5 left!' but it restocks in an hour), consumers become sceptical of your brand.

Unhealthy spending habits: FOMO-fuelled decisions often lead to impulsive purchases—great for short-term sales, but potentially damaging to long-term relationships.

SO, is it time to rethink AI-fuelled FOMO?

Here’s the thing: creating a sense of urgency works, but it’s a short-term game. If your audience feels manipulated, they’ll start to disengage. And in a world where trust is already hard to come by, playing fast and loose with consumer psychology is a dangerous move.

But then, what’s the alternative?

AI isn’t the villain here—it’s the how we use it that matters. Instead of weaponising predictive algorithms to stoke anxiety, let’s use them to build connection and value.

4 ways to do this:

1. Shift from scarcity to exclusivity.

Instead of pushing urgency, focus on making consumers feel special. Create experiences that reward loyalty rather than exploiting impulsivity.

An example of this is Spotify Wrapped: the perfect mix of personal and exclusive—it’s all about you and feels like a gift, not a sales pitch.

2. Be transparent about scarcity.

If you’re using scarcity, make it real. No fake 'low stock' alerts. Let your audience trust that when you say something’s limited, you mean it.

An example of this is Everlane, who are great at creating limited editions with a focus on transparency. When they release a new product, they share exactly how many units are available. And these numbers are often tied to sustainable production processes.

3. Use AI to empower, not pressure.

Why not use algorithms to enhance the customer experience instead of stressing them out? Predict what they might want—but pair it with thoughtful timing and valuable suggestions.

An example of this is Sephora, which uses AI to recommend products you’ll love based on past purchases, but without forcing a 'buy now' mentality.

4. Create FOMO-free zones.

Sometimes, the most impactful thing you can do is not create urgency. Surprise your audience with evergreen content, long-term offers, or no-pressure campaigns that build goodwill.

So, are you overusing urgency?

If so, dial it back and find new ways to engage. Because, why are you giving your audience anxiety? Ew.

Be upfront about your stock, availability, and timing—it builds trust in the long run.

Reward your most engaged customers with genuine perks that aren’t tied to FOMO.

Pay attention to how your audience feels about your tactics. If they’re calling you out for being manipulative, take it seriously.

Just like, don’t be a dick. Ya feel?

AI-powered FOMO isn’t inherently bad—it’s just a tool.

But when that tool is used to stoke anxiety and manipulate decisions, it starts to erode the very trust that brands rely on to thrive.

So, let’s retire the panic-inducing 'only 3 left!' alerts and start using AI to create thoughtful, meaningful connections.

Because the long game is not about making your audience panic-buy; it’s about making them genuinely glad they bought in.

-Sophie, Writer