IMPACT OF ARTIFICIAL INTELLIGENCE AND DIGITAL MARKETING ON CONSUMER BEHAVIOUR

Artificial Intelligence (AI) has transformed digital marketing from a reactive communication system into a 
predictive and adaptive behavioral architecture. This study examines how AI-driven digital marketing reshapes 
consumer behaviour in the Indian digital ecosystem, with particular focus on personalization, algorithmic 
decision-making, predictive analytics, and consumer trust. 
Using primary data collected from 155 digitally active respondents in Navi Mumbai through a structured 
questionnaire, the research analyzes consumer perceptions of AI-driven marketing interventions such as 
personalized recommendations, dynamic pricing, and algorithm-guided purchase pathways. Statistical tools 
including percentage analysis and Chi-square testing were employed. Findings indicate that AI-driven systems 
significantly influence consumer decision-making patterns by reducing cognitive effort and increasing reliance 
on algorithmic recommendations. However, concerns regarding transparency, data privacy, and autonomy 
remain prominent. The study concludes that while AI enhances efficiency and relevance, long-term brand 
sustainability depends on balancing personalization with ethical transparency.