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Automated decision-making is one of the fundamental functions of smart home technologies. With the increasing availability of Artificial Intelligence (AI) and Internet of Things (IoT) technologies, those functions are becoming increasingly sophisticated. While many studies have been conducted on optimizing algorithms to improve the accuracy of predictions, less attention has been paid to how humans interact with algorithmic systems. This involves questions such as to what degree humans are involved in the algorithmic decision-making process and how we can design meaningful interactions between humans and systems relying on decision-making algorithms. With these questions in mind, our paper presents a literature review on the current state of decision-making algorithms in smart homes. Based on an analysis of 49 selected papers, we present a systematic investigation towards the application areas and …