In the present epoch, dominated by the ubiquity of social media, the discourse surrounding privacy calculus has assumed critical importance. This paper endeavors to scrutinize the influence exerted by Artificial Intelligence (AI) capabilities, notably personalization and connectivity, on the co-creation of value between users and social media entities from the perspective of knowledge management. The deployment of AI technologies, particularly through bespoke recommendation engines and sophisticated connectivity aids, has markedly augmented the accessibility of information and the fluency of communication channels, albeit raising substantial concerns regarding privacy intrusions due to the extensive data harvesting and analysis these technologies entail. Drawing upon a dataset of 824 valid questionnaire responses and utilizing Mplus software for the construction of a Structural Equation Model (SEM), this study robustly validates a parallel mediation model through Bootstrap and latent moderated structural equation methodologies. The findings indicate that privacy calculus exerts a positive influence on both personalization and connectivity, which in turn significantly foster value co-creation. By weaving together Privacy Calculus Theory, Dual-congruity Perspectives, and Service-Dominant Logic, the paper crafts an intricate framework that interrogates the nexus between privacy calculus and value co-creation, thereby augmenting and enriching extant literature. These insights bear significant implications for social media platform managers, highlighting the imperative of enhancing privacy safeguards to promote a virtuous cycle of platform enhancement and value co-creation.

Keywords: Privacy calculus, Personalization, Artificial Intelligence, Connectivity, Value co-creation