Impact of AI-Powered Personalization on Digital Marketing Effectiveness

Abstract

The continuous growth of Ai has also revolutionized digital marketing by providing enormous personalized consumer experiences on a bigger scale. Interestingly, the study examines how some personalization techniques based on artificial intelligence affect consumer engagement in digital marketing through click-through rates and purchase conversion. A quantitative survey method was adopted with 320 digital marketing professionals and online consumers from multiple industries. How the large scale datasets about users behaviour are used by algorithms such as for personalization, recommendation engines and behavioural targeting is being investigated in this research based on technology acceptance modeland expectation-confirmation theory. The results indicate that personalization features powered by AI greatly elevate consumer engagement and conversion, while the moderating role of algorithm transparency and perceptions of data privacy is also confirmed. In particular, when personalization was thought of as less relevant and not value-adding to them, consumers showed lower on satisfaction & loyalty. The findings provide readily applicable insight for marketers looking to navigate the use of AI-based tools while remaining ethical in their data collection. This study adds to the literature on human–AI interaction in marketing settings and offers a guide for how practitioners can implement responsible personalization techniques