The Paradigm Shift in Digital Consumption: A Literature Review on the Impact of Artificial Intelligence on Online Buying Behaviour

Abstract

This study provides a rigorous, critical literature review examining the multifaceted impact of Artificial Intelligence (AI) on online buying behaviour. As e-commerce ecosystems rapidly integrate machine learning algorithms, natural language processing (NLP), conversational agents, and predictive analytics, the digital consumer journey is undergoing a structural transformation. By synthesizing contemporary empirical research and theoretical models—including the Technology Acceptance Model (TAM), Flow Theory, and the Theory of Planned Behavior (TPB)—this paper identifies the primary mechanisms through which AI shapes consumer awareness, evaluation, decision-making, and post-purchase loyalty. The synthesis reveals that while personalized recommendations and real-time support significantly reduce cognitive friction and heighten purchase intentions, algorithmic opacity, privacy concerns, and diminished human interaction introduce substantial friction. Finally, this review outlines critical research gaps and provides strategic recommendations for retail practitioners and scholars navigating algorithmic commerce.