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Impact of AI-Driven Digital Marketing on Consumer Behavior

Book Title: Transformative Approaches in Multidisciplinary Research (TAMR)

Chief Editors: Dr. Meenakshi Kujur, and Dr. Hamidun Bunawan

Associate Editors: Mr. Gunjit Singhal, and Dr. Asma Farooque

Co-Editors: Dr. Suresh Kamarapu, and Dr. Souvik Sur

Chapter: 26

DOI: https://doi.org/10.59646/672/26

Author: Sabeela K Abdulsalam

Abstract

Artificial intelligence (AI) is transforming digital marketing by providing hyper-personalized, data-driven, and flexible client interaction strategies. This study examines how business understanding, customer acquisition, and retention are being redefined by AI-powered technologies, including chatbots, recommendation engines, natural language processing (NLP), machine learning-based predictive analytics, and sentiment analysis. It looks at how AI affects consumer behaviour, decision-making, and brand impression, emphasizing how intelligent systems and automation improve marketing effectiveness, maximize ad targeting, and cultivate enduring client loyalty. Important ethical issues are also covered in the study, such as algorithmic prejudice, and the necessity of using AI in marketing in a responsible and transparent manner. The paper offers insights into how AI-driven marketing tactics are changing the interaction between businesses and consumers in the digital age, finally bridging the gap between technical accuracy and human creativity, by drawing on case studies and contemporary industry examples.

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