Digital Identities and the Social Realm: How AI-Driven Platforms Reshape Participation, Recognition, and Group Dynamics

This paper argues that digital identity in AI-mediated environments has become a central mechanism through which contemporary societies organise recognition, participation, and belonging. Digital identity is no longer simply a technical representation of the individual. It is produced through infrastructural processes of classification, ranking, and credibility signalling that determine who becomes visible, who is treated as legitimate, and who is able to participate meaningfully in social and civic life. The paper develops a conceptual framework that treats AI-driven platforms as social infrastructures rather than neutral intermediaries. It shows how identity is inferred through data-driven systems rather than negotiated through social interaction, how recognition is operationalised through visibility and credibility metrics rather than ethical judgement, and how participation becomes conditional on algorithmic allocation of attention rather than guaranteed by access alone. Visibility is identified as the key conversion point through which inferred identity becomes social consequence. Drawing on interdisciplinary literature, the analysis demonstrates that misrecognition, exclusion, and inequality in platform environments are not primarily the result of isolated error or intentional bias. They are patterned outcomes of ordinary optimisation processes that distribute legitimacy and opportunity unevenly across social groups. These dynamics reshape group formation, harden social boundaries, and concentrate risk among populations that are already more vulnerable to misrecognition and reduced contestability. The paper concludes that governing digital identity is a societal challenge rather than a purely technical one. As platforms increasingly perform institutional functions without equivalent accountability, digital identity governance becomes a critical site of social ordering. Addressing this challenge requires public standards for how visibility, recognition, and participation are allocated, meaningful avenues for contestation, and protections against the normalisation of stratified belonging in AI-mediated societies.