An Analytical Study of Consumer Perception of AI-Driven Personalisation in Digital Marketing

Abstract

The emergence of Artificial Intelligence (AI) has greatly changed the manner in which companies comprehend and engage with consumers. AI-based personalization helps businesses to analyze consumer data, forecast preferences and deliver personalized offers, products, services, recommendations, promotions and many more. This paper seeks to investigate consumer perception of AI based personalization and examines socio-economic factors that affect consumers' perception and evaluation of personalized offerings. 120 sample online consumers from Ernakulam District of Kerala were chosen by applying convenience sampling. Primary data was gathered through a structured survey among consumers and appropriate statistical tool i.e. multiple regression analysis has been used for analysis of the gathered data. The findings help to gain an understanding of consumers' perceptions and response to AI personalization being used increasingly in marketing activities. In marketing, AI-driven personalisation supports a variety of activities, including customised email communication, targeted digital advertising, product recommendations, and personalised promotional content. By analysing consumer characteristics and behavioural information, marketers can develop communications that are more closely aligned with specific consumer interests and preferences. Consequently, AI-driven personalisation has become an important component of contemporary digital marketing, while consumer trust, privacy, transparency, and perceived relevance remain critical factors in determining how consumers respond to personalised interactions.