AI-Driven Personalization and Consumer Behavior

Abstract

The rapid advancement of artificial intelligence (AI) has significantly transformed the landscape of consumer markets by enabling highly sophisticated personalization strategies. AI-driven personalization utilizes data analytics, machine learning algorithms, and predictive modeling to tailor products, services, and marketing messages to individual consumer preferences and behaviors. This study explores the influence of AI-driven personalization on consumer behavior, focusing on aspects such as purchase intention, customer satisfaction, trust, and loyalty. The abstract highlights how personalized recommendations, dynamic pricing, and targeted communication reshape consumer decision-making processes. While AI enhances customer engagement and operational efficiency for businesses, concerns related to data privacy, algorithmic bias, and consumer autonomy remain critical challenges. The study concludes that AI-driven personalization is a powerful determinant of modern consumer behavior, provided ethical and transparent practices are adopted.