From Clicks to Conversions: How AI-Driven Personalization Shapes Consumer Trust and Purchase Intent in Digital Marketing

Abstract

The paper examines how AI-induced personalization affects consumer trust and intention to purchase in online marketing. As the need to apply Artificial Intelligence (AI) to the development of personalized consumer experiences increases, it is important that marketers should comprehend the impact of such AI-driven approaches on consumer behavior. The study uses a mixed-method design, involving the use of both quantitative and qualitative data, to analyze the interaction of consumer trust, perceived relevance of personalized advertisements, and purchase intention. The data were gathered due to the online survey of 500 people as they responded to the questions and have experienced AI-based personalized content in digital marketing. The data were analyzed using descriptive statistics, correlation analysis and regression modeling. The findings indicate that the perceived relevance of customized advertisements contains the highest degree of correlation with purchase intent and consumer trust in AI customization is the other factor that significantly affects buying behavior. The relevance of ad and trust were also found to be important predictors of purchase intent with trust playing a moderating role. The paper points out the need to be transparent in the usage of data and ethical in AI-based personalization because the trust of consumers is strongly shaped by the way they handle their data. Practical implications imply that businesses ought to work on the relevancy of their marketing content in addition to addressing privacy of the consumers and establishing the trust by practicing transparency. The results can be of great use to marketers interested in streamlining AI-based personalization approaches to achieve customer loyalty and rising conversions.