Impact of Artificial Intelligence on Consumer Purchase Behaviour : A Study of Personalized Digital Marketing Strategies

Artificial intelligence (AI) has changed the realm of digital marketing through the use of personalized services which shape consumer behavior towards purchase. In this regard, the current study is conducted to find out the effect of personalized marketing services via AI on consumer purchase behavior, focusing specifically on consumer awareness, application, satisfaction, factors which shape this service as well as the challenges faced by the consumer. In the current study, a quantitative descriptive research approach is used where primary data from 200 online consumers are gathered using a structured questionnaire. Next, descriptive statistical methods including frequency, percentage, mean, standard deviation, and ranking analysis are used to examine the data using Microsoft Excel and SPSS version 26.0. The results show a high level of consumer awareness and application of AI based personalized marketing and majority of them stated that AI recommendations, advertisements and suggestions about products influence their purchase behavior positively. Personalized product recommendations and promotional offers turn out to be the main influencers of buying decisions, whereas most of the participants show their contentment with the use of AI technologies in marketing. On the other hand, privacy threats, data protection problems, risks of the misinterpretation of the information, and lack of transparency are important obstacles on the way to consumer trust. It is concluded from the research that personalized digital marketing based on the use of AI has a very strong potential to promote consumer involvement and intention to buy; however, its successful operation requires the application of ethical principles of AI.