The Impact of Artificial Intelligence on Consumer Decision-Making in Digital Marketing

Authors

  • Farhad Mumtaz MBA, Department of Business and Management, University of Creative Arts, Farnham,UK. Author
  • Muhammad Noman Qaisar School of Economics and Management, North University of China. Author
  • Aleena Zahid MPhil Scholar, Quaid-i-Azam School of Management Sciences, Quaid-i-Azam University, Islamabad, Pakistan. Author
  • Nabeel Ahmed Riphah International University, Islamabad. Author

Keywords:

Artificial Intelligence, Consumer Behavior, Digital Marketing, Personalization, Chatbots, Decision-Making, Data Privacy, Emotional Engagement, Algorithmic Trust

Abstract

This study explores how Artificial Intelligence (AI) tools—such as product recommendation engines, chatbots, dynamic ads, and voice assistants—influence the consumer decision-making process in digital marketing. A survey of 327 participants was analyzed using descriptive and inferential statistics to assess AI's role in different decision-making stages. Findings indicate that AI substantially enhances decision efficiency, emotional engagement, and user satisfaction, particularly during the information search and purchase decision phases. Product recommendations emerged as the most influential AI feature, impacting 59% of users’ purchase decisions. Chatbots and dynamic ads also demonstrated significant positive effects, while voice assistants had mixed responses due to limited personalization. The study applies the Technology Acceptance Model (TAM) and algorithmic trust theory to explain the observed behavior, highlighting that trust and perceived usefulness are central to AI adoption. It also emphasizes emotional alignment as a moderating factor for consumer satisfaction. Despite AI's benefits, concerns around behavioral tracking, data misuse, and algorithmic opacity remain high. These insights suggest that while AI is transforming consumer interaction, its effectiveness depends on emotional design, ethical implementation, and transparent data usage. The study offers practical recommendations for marketers and contributes to emerging theory in human–AI interaction within consumer behavior.

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Published

2025-06-30

How to Cite

The Impact of Artificial Intelligence on Consumer Decision-Making in Digital Marketing. (2025). Journal of Asian Development Studies, 14(2), 372-387. https://poverty.com.pk/index.php/Journal/article/view/1244

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