AN EMPIRICAL STUDY ON THE IMPACT OF AI-POWERED PERSONALIZED ADVERTISING ON CONSUMER DECISION-MAKING BEHAVIOUR

Abstract

Artificial Intelligence (AI) has transformed the digital marketing landscape by enabling businesses to deliver personalized advertisements based on consumer preferences, online activities, and behavioural patterns. AI-powered personalized advertising uses advanced technologies such as machine learning, predictive analytics, and big data to provide relevant product recommendations and targeted promotional messages, thereby influencing consumer decision-making behaviour. The present study, titled “An Empirical Study on the Impact of AI-Powered Personalized Advertising on Consumer Decision-Making Behaviour,” aims to examine the level of awareness and acceptance of AI-powered personalized advertisements, identify the factors influencing consumer responses, and analyze their impact on purchase decisions among consumers in Thoothukudi District. The study adopted a structured questionnaire method for data collection from respondents, and statistical tools such as ANOVA, Mann–Whitney U test, and Kruskal–Walli’s test were applied to analyze the relationship between demographic variables and consumer perceptions. The findings reveal that age significantly influences consumers’ awareness and acceptance of AI-powered personalized advertising, while gender and occupation influence specific dimensions of consumer perceptions and decision-making behaviour. The study also highlights that personalization, convenience, trust, and relevance positively contribute to consumer acceptance, whereas privacy concerns remain a major challenge. The research concludes that AI-powered personalized advertising can effectively enhance consumer engagement and purchasing decisions when implemented with transparency, ethical data practices, and adequate privacy protection. The study provides valuable insights for marketers, digital platforms, and policymakers in developing consumer-centric AI advertising strategies.