UNLOCKING CONSUMER BEHAVIOR IN AGE OF ARTIFICIAL INTELLIGENCE: A STUDY ON TAILORED DATA, PRIVACY RESERVATIONS, AND PURCHASE INTENTIONS

Abstract

This study investigates the complicated relationship between consumers and artificial intelligence (AI), precisely exploring the impact of tailored data (AI) on purchasing decisions. Drawing from a diverse sample of social media users in top five HEC ranked universities, the study investigates how factors such as privacy reservations and positive past experiences intersect with AI-driven personalization, impact consumer attitudes and willingness to make purchases online. The researcher applied survey method to collect data from 346 participants, primarily social media users, with the focus on those regularly engaging with the social media advertising and AI-based applications. This research tested three hypotheses wherein findings show significant influence of tailored data on consumer purchasing willingness and positive past experiences with AI ads. The privacy concerns, however, were found to have an insignificant impact on the online buying decisions. In this linking, these insights contribute to broader discourse on AI's role in consumer behavior, offering practical implications for various businesses navigating integration of artificial intelligence technologies in marketing strategies.