A CASE STUDY ON ARTIFICIAL INTELLIGENCE AND CONSUMER BEHAVIOUR

Abstract

Artificial Intelligence (AI) has become an important technology influencing modern consumer behaviour. From personalized product recommendations and AI-powered chatbots to predictive advertising and virtual assistants, AI is changing how consumers search for information, evaluate products, make purchasing decisions, and interact with brands. Businesses are increasingly using AI to understand consumer preferences by analysing large volumes of customer data, including browsing behaviour, purchase history, reviews, social media activity, and demographic information. This enables organizations to provide personalized experiences and predict future consumer needs. At the same time, the growing use of AI raises important concerns regarding consumer privacy, data security, algorithmic bias, transparency, and trust. Consumers may appreciate personalized recommendations, but excessive personalization or the feeling of being continuously monitored can negatively affect their confidence in a brand. Therefore, understanding the relationship between AI and consumer behaviour is essential for businesses seeking to use AI effectively and ethically. This paper examines how AI influences consumer behaviour, particularly in the areas of personalization, purchasing decisions, customer experience, digital marketing, consumer trust, and brand engagement. It also discusses the major benefits, challenges, and future opportunities associated with AI-driven consumer interactions. The paper concludes that AI can significantly improve consumer experiences and business performance when it is implemented responsibly, transparently, and with a strong focus on consumer needs.