Artificial Intelligence in Consumer Decision-Making: A Review of AI-Driven Personalization and Its Managerial Implications

Abstract

Artificial intelligence (AI) inclusion into consumer decision-making procedures has changed how companies interact with and impact their consumers.  The function of personalization driven by artificial intelligence and how it affects managerial strategies in customer relationship management (CRM) and marketing.  Using cutting-edge technology including machine learning, natural language processing, recommendation engines, dynamic pricing models, and predictive analytics will help companies provide hyper-personalized experiences that increase user involvement and pleasure. These technologies lower cognitive burden and provide pertinent product and service recommendations in real time, therefore simplifying difficult decision-making procedures.  AI improves confidence, loyalty, and perceived value, therefore influencing important behavioral results as brand attachment, purchase intentions, and conversion rates.  Companies have difficulties with data privacy, algorithmic bias, and lack of openness, which, if not properly addressed could compromise customer confidence.  Good use of artificial intelligence personalization calls for organizational preparation, a qualified staff, and ongoing observation of personalizing techniques. Practical managerial advice to strike a balance between ethical issues and technological innovation thereby guaranteeing responsible usage of artificial intelligence.  It also provides benchmarks for assessing artificial intelligence (ROI) of projects, thereby enabling managers to assess performance and maximize next projects.  The ongoing expansion of AI's impact in forming tailored and data-driven consumer decision-making