The Impact of Artificial Intelligence on Consumer Behavior: A Study of E-commerce Personalization Techniques

Abstract

This research paper investigates the impact of Artificial Intelligence (AI) on consumer behavior, focusing on personalization techniques in e-commerce. By analyzing user interaction data and conducting consumer surveys, the study examines how AI-driven personalization influences user engagement, sales metrics, and consumer perceptions. The results indicate a substantial increase in engagement metrics, such as time spent on site and interaction rates, following the implementation of AI personalization. Additionally, significant improvements in conversion rates, average order values, and customer retention rates were observed, highlighting the business efficacy of AI in enhancing the shopping experience. Despite the positive outcomes, the study also uncovers notable consumer concerns regarding privacy and data security, with a substantial portion of participants expressing apprehension about how their personal information is managed. This dichotomy underscores the need for e-commerce platforms to balance effective personalization with stringent privacy measures. The paper suggests that while AI personalization offers considerable benefits in terms of engagement and sales, ethical considerations and consumer trust play critical roles in its successful implementation. The study advocates for ongoing innovation in AI personalization techniques that prioritize transparency and ethical practices to sustain consumer trust and loyalty in the evolving e-commerce landscape.