ARTIFICIAL INTELLIGENCE–DRIVEN PERSONALIZATION AND CONSUMER BEHAVIOR IN E-COMMERCE: AN EMPIRICAL STUDY OF PURCHASE INTENTIONS, TRUST, AND CUSTOMER LOYALTY

Abstract

The rapid growth of e-commerce has transformed the way consumers search for information, evaluate products, and make purchasing decisions. Artificial Intelligence (AI) has emerged as a critical technology that enables firms to deliver personalized experiences through recommendation systems, targeted advertisements, dynamic pricing, chatbots, and predictive analytics. This study examines the impact of AI-driven personalization on consumer behavior in e-commerce, focusing on three key outcomes: purchase intentions, consumer trust, and customer loyalty. Drawing upon the Technology Acceptance Model (TAM), Relationship Marketing Theory, and Personalization Theory, the paper explores how AI-powered personalization influences consumer decision-making. The findings from existing literature indicate that effective personalization enhances customer experience, increases trust, and strengthens long-term customer relationships. However, concerns regarding privacy, data security, and algorithmic transparency remain significant challenges. The study contributes to the growing literature on AI and digital marketing by providing a comprehensive analysis of personalization strategies and their implications for consumer behavior