Impact of AI-Personalization on Customer Purchase Decisions in E-Commerce

Abstract

urpose: This study examines the impact of AI-personalization on consumer purchase decisions in e-commerce. It explores how the Level of AI-personalization, Perceived Relevance of AI- personalized recommendations, and Consumer Satisfaction influence purchasing behaviour. Methodology: A quantitative research approach was employed, collecting survey data from 152 respondents. Correlation and regression analyses were conducted to assess the significance of relationships between AI-personalization and consumer behaviour. Results: The findings indicate statistically significant positive correlations between AI- personalization (r = 0.467), Perceived Relevance (r = 0.601), and Consumer Satisfaction (r = 0.641) with Consumer Purchase Decisions. Regression analysis confirmed that AI-personalization explains between 61.8% and 72.4% of the variance in consumer behaviour. Conclusion: AI-personalization enhances consumer satisfaction, increases perceived relevance, and positively influences purchasing behaviour. Businesses can leverage AI-driven personalization strategies to boost engagement and sales. Future research should explore broader demographics and ethical concerns in AI-personalization.