Examining the Mediating Role of Brand Trust in the Relationship Between AI-Driven Personalization and Consumer Loyalty

Abstract

Artificial Intelligence (AI) has significantly transformed digital marketing by enabling brands to provide personalized experiences to consumers. AI-driven personalization uses consumer data to offer customized recommendations, targeted advertisements, and relevant content. While personalization enhances customer experience, its impact on long-term consumer loyalty depends on the level of trust consumers place in the brand. This study examines the mediating role of brand trust in the relationship between AI-driven personalization and consumer loyalty. Primary data were collected from consumers using a structured questionnaire with a five-point Likert scale. Statistical tools such as reliability analysis, correlation, regression, and mediation analysis were employed to test the proposed relationships. The findings indicate that AI-driven personalization positively influences brand trust and consumer loyalty. Further, brand trust partially mediates the relationship between AI personalization and consumer loyalty. The study highlights the importance of building consumer trust to convert AI-based personalization strategies into sustained customer loyalty.