Impact of AI-Enabled Personalization on Consumer Purchase Intentions: The Mediating Roles of Trust and Perceived Relevance

Abstract

The way businesses offer customized customer experiences has changed as a result of the growing use of artificial intelligence (AI) in e-commerce. Despite the widespread use of AI-enabled personalization, little is empirically known about how it influences consumers’ purchase intentions, particularly in emerging digital economies. This study examines how AI-enabled personalization affects consumer purchase intentions, with a focus on the mediating roles of perceived relevance and consumer trust. Customers who regularly engage with e-commerce platforms that employ AI-driven personalization features, such as customized content, targeted promotions, and personalized recommendations, were asked to complete a structured questionnaire as part of a quantitative research design. Reliability, correlation, multiple regression, and mediation analyses were used to test the suggested conceptual model. The findings show a positive correlation between AI-enabled personalization and consumer purchase intentions. Furthermore, this relationship is significantly mediated by consumer trust and perceived relevance, indicating that AI-driven personalized interactions work better when users find them to be trustworthy and relevant rather than intrusive. The study contributes to the body of knowledge on AI-driven marketing by offering empirical insights into the psychological processes that affect consumers’ responses to AI-enabled personalization. From a managerial perspective, the findings provide e-commerce businesses with vital information about the need to develop transparent, customer-focused, and morally sound AI personalization strategies that increase trust and facilitate well-informed decision-making. In line with Sustainable Development Goal 12, the study highlights how AI technologies can promote responsible consumption in the digital economy.