Personalization versus Privacy: Exploring Consumer Responses to AI-Driven Marketing Strategies in Digital Commerce

Artificial Intelligence, Personalized Marketing, Privacy Concerns, Consumer Trust, Digital Commerce Finance, Purchase Intention and Predictive Analytics.

The digital commerce landscape has been transformed by Artificial Intelligence (AI), and it has had a significant impact on how businesses connect with their customers. AI-powered marketing tactics enable companies to analyze vast quantities of customer details, predict purchasing patterns, and deliver customized suggestions. While personalisation can provide a better and more efficient customer experience and enhance business performance, it also presents customer privacy concerns, data security risks and ethical data usage issues. The article was limited to the contradictory aspects of personalization and privacy in AI-driven marketing for digital commerce finance. It explores consumer perceptions and behavioural reactions, the nature of trust, regulatory aspects and implications for companies' strategies. This study examines consumer responses to AI-driven marketing strategies, focusing on the relationship between personalization benefits, privacy concerns, consumer trust, and purchase intentions. A quantitative research design was employed using a structured questionnaire administered to 200 respondents selected through convenience sampling. Descriptive statistics and Analysis of Variance (ANOVA) were used to analyze the data. The study concludes that while AI-powered personalization enhances consumer engagement and purchase intentions, privacy protection and data security remain critical for building trust. Organizations should adopt transparent and ethical AI practices that balance personalized services with robust privacy safeguards to achieve sustainable consumer relationships in digital commerce finance.