Published June 30, 2026 | Version v1

Ethical AI in Marketing: The Role of Transparency, Trust, and Privacy in Shaping Customer Loyalty Across Digital Platforms

  • 1. ROR icon Tumkur University

Contributors

Registration authority:

  • 1. Seshadripuram Research Foundation
  • 2. ROR icon Seshadripuram First Grade College

Description

Abstract

Artificial intelligence (AI) is a significant aspect of digital marketing since it enables decision-making and recommendations by computers. The rise in awareness among consumers using data gathering techniques has raised concerns regarding ethics in terms of privacy and trust when using AI in digital marketing. This study will examine the relationship between ethical considerations in AI usage in digital marketing and consumers' brand loyalty.

The research explores the impact of transparency and privacy in AI on consumer trust, and subsequently, on brand loyalty in online platforms. Using the Technology Acceptance Theory and Trust-Based Relationship Marketing Theory, this research puts forward a conceptual framework in which trust is the mediator between the various ethical factors of AI (transparency and privacy) and brand loyalty.

A quantitative research design was used to collect data from 300 users of AI-enabled digital marketing platforms. Using SPSS Statistics, statistical analysis was carried out to look into the mediating interactions between the variables. The work contributes to the expanding corpus of research on ethical AI marketing by integrating ethical design principles into customer behavior models. It provides theoretical and managerial insights into how transparency and privacy assurance foster trust, which in turn increases enduring customer loyalty in AI-driven digital ecosystems.

Keywords: Ethical AI, Transparency, Privacy, Trust, Customer Loyalty, Digital Marketing

Files

ARTICLE A 7.pdf

Files (1.1 MB)

Name Size
md5:dfcb78a61a43990395506ceef7577a03
1.1 MB Preview Download

Additional details

References

  • ## Bibliography Akbar, M. U., Ibrahim, Nabil, S. J., Iqbal, K. A., & Islam, A. (2024). The influence of artificial intelligence on consumer trust in e-commerce: Opportunities and ethical challenges. *European Journal of Theoretical and Applied Sciences, 2*(6), 250–259. https://doi.org/10.59324/ejtas.2024.2(6).20 Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. *Journal of Personality and Social Psychology, 51*(6), 1173–1182. Chavda, D., & Deshpande, S. (2022). Ethical issues in marketing. *International Journal of Management, Public Policy and Research, 1*(4), 8–11. https://doi.org/10.55829/ijmpr.v1i4.74 Davenport, T., Guha, A., Grewal, D., & Bressgott, T. (2020). How artificial intelligence will change the future of marketing. *Journal of the Academy of Marketing Science, 48*(1), 24–42. https://doi.org/10.1007/s11747-019-00696-0 Gefen, D. (2000). E-commerce: The role of familiarity and trust. *Omega, 28*(6), 725–737. https://doi.org/10.1016/S0305-0483(00)00021-9 Jobin, A., Ienca, M., & Vayena, E. (2019). The global landscape of AI ethics guidelines. *Nature Machine Intelligence, 1*, 389–399. https://doi.org/10.1038/s42256-019-0088-2 Lankton, N. K., McKnight, D. H., & Tripp, J. F. (2015). Technology, humanness, and trust: Rethinking trust in technology. *Journal of the Association for Information Systems, 16*(10), 880–918. https://doi.org/10.17705/1jais.00411 Morgan, R. M., & Hunt, S. D. (1994). The commitment–trust theory of relationship marketing. *Journal of Marketing, 58*(3), 20–38. Nandyala, L. (2024). Ethical implications of artificial intelligence in marketing. *International Journal of Scientific Research in Engineering and Management, 8*(5), 1–5. https://doi.org/10.55041/IJSREM33275 Oluwafemi, I. O., Clement, T., Adanigbo, O. S., Gbenle, T. P., & Adekunle, B. I. (2021). A review of ethical considerations in AI-driven marketing analytics: Privacy, transparency, and consumer trust. *International Journal of Multidisciplinary Research and Growth Evaluation, 2*(2), 428–435. https://doi.org/10.54660/.IJMRGE.2021.2.2.428-435 Vlačić, B., Corbo, L., Costa e Silva, S., & Dabić, M. (2021). The evolving role of artificial intelligence in marketing: A review and research agenda. *Journal of Business Research, 128*, 187–203. https://doi.org/10.1016/j.jbusres.2021.01.055 Chintalapati, S., & Pandey, S. K. (2022). Artificial intelligence in marketing: A systematic literature review. *Marketing Intelligence & Planning, 40*(1), 28–42. https://doi.org/10.1177/14707853211018428