The Impact of “AI”-Driven Personalization on Consumer Behaviour in Digital Marketing

DOI

10.2991/978-2-38476-575-1_18How to use a DOI?

Keywords

AI-driven Personalization; Consumer Behaviour; Digital Marketing; Privacy Concerns; Consumer Engagement

Abstract

This paper assesses the effects of personalization through AI on consumer behaviour in online marketing, in terms of involvement, trust, satisfaction, privacy issues and purchase choices. Structured questionnaire was used as a guide to administer questionnaires to 164 individuals and data collection was done using a five-point Likert scale to describe perceptions about AI-driven personalization on five major dimensions. The statistical results showed that the concept of personalization based on AI plays a significant role in consumer behaviour, especially in terms of increasing engagement and purchasing behaviours. It is worth noting that, 92 respondents greatly agreed that individualized advertisement influenced their purchase decisions positively which supports the effectiveness of customized marketing. Nonetheless, the issue of privacy was a significant threat, with 62 participants showing no opinion and 26 respondents stating that the problem of privacy had a negative impact on their reactions to personalized marketing, which suggested that the attitudes of consumers to the safety of their data were rather reserved. Customer satisfaction was shown to have ambivalent reactions with 95 respondents agreeing that personalized communication lived to their expectations but 88 strongly disagreeing with the idea that personalization would specifically promote the level of overall satisfaction, and this is accompanied by high-quality and relevant content. The effect of personalized recommendations on consumer engagement was significantly positive, since 129 respondents affirmed that personalized recommendations did enhance product exploration, which contributes to the role of targeted content in digital marketing. Also, AI-driven personalization was identified to arouse impulse buying with 47 respondents highly agreeing to this but skepticism was still widespread about the predictive ability of AI, and 63 of the respondents highly disagreed that AI is able to predict their purchasing requirements. This paper identifies the two-sidedness of AI-based personalization and recommends moderate approaches to marketing that will combine openness, ethical use of data, and better predictive performance. The findings can be utilized by the marketer and AI developers to enhance consumer confidence and advance the AI-based personalisation in the digital marketing landscape.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - C. Srinivasan
AU  - J. Mohamed Ali
AU  - M. Ahamedullah
PY  - 2026
DA  - 2026/05/06
TI  - The Impact of “AI”-Driven Personalization on Consumer Behaviour in Digital Marketing
BT  - Proceedings of the International Conference on Dynamics of Environment, Sustainability, and Gender Disparities: A Holistic Dialogue for Inclusive Futures (ICDESGD 2025)
PB  - Atlantis Press
SP  - 293
EP  - 311
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-575-1_18
DO  - 10.2991/978-2-38476-575-1_18
ID  - Srinivasan2026
ER  -