Abstract:

Recent advancements in artificial intelligence (AI) are revolutionizing commerce at an unprecedented pace. As these innovations continue to redefine every stage of the commercial landscape, it has become essential for business leaders to anticipate emerging trends and strategically future-proof their organizations to thrive in this evolving digital paradigm and to compete in today’s digital economy, each e-commerce platform has implemented a personalized recommendation service. In e-commerce, personalized shopping experiences have enabled through the advanced recommendation systems with AI. AI-driven recommendations impact on consumer perceptions and online purchase behavior examined in this study. This study uses quantitative, cross-sectional survey method in E-commerce users. Also examines their ethical concerns and their awareness of AI with respect to personalization, trust, and ethical concerns. A revolutionary change has been brought about by the integration of artificial intelligence in e-commerce. AI has enhanced personalization, optimized operations, and improved customer support systems. A significant impact has been made on consumer behavior, decision-making, and buying patterns as a result of these advancements. With the help of descriptive statistics, user perceptions of AI technologies were investigated. Structural equation modeling (SEM) used to analyse the causal relationships between personalization, perception, behavioral preferences, and opinions about targeted advertising. AI-driven recommendations seem to be perceived as more influential by consumers when personalization is used, but shopping preferences do not change directly as a result of personalization. Users’ opinions on targeted ads are negatively impacted by increased personalization, which correlates with reduced AI awareness. A practical consequence of these findings is to offer practical implications for e-commerce platforms that wish to optimize their AI-based personalization strategies.