Artificial Intelligence in Digital Marketing: A Systematic Review and Strategic Framework for AI-Augmented Marketing

Artificial Intelligence (AI) is launching digital marketing to evolve from a supporting function to one of strategic co-creation of customer value. Although earlier studies have examined how certain AI applications are utilized, there still exist limited broad, theory-informed syntheses across marketing domains. In mitigation of this, the present study performs a systematic literature review based on PRISMA 2020 standards. 753 Web of Science, Scopus, and ScienceDirect papers were screened, and 162 peer-reviewed published articles from 2018 to early 2025 were selected for final analysis. Through thematic mapping and grounded coding, the review proposes the AI-Augmented Marketing Framework (AAMF) and underscores five strategic domains wherein AI integration is taking place: personalized engagement, dynamic campaign automation, generative content planning, explainable AI systems, and ethical AI governance. Unlike prior reviews centered on automation and customer relationship management (CRM), this study situates AI as a dynamic capability to facilitate value co-creation, leveraging the Dynamic Capabilities Framework and Service-Dominant Logic. The evaluation also takes into account the twofold potential and risk of generative AI models such as ChatGPT, which facilitate amplifiable creativity while posing ethical and transparency issues. Key limitations include database and language restrictions, the dynamic evolution of AI, and publication bias. The current research contributes a conceptual framework, integrates fragmented literature, and proposes a future research agenda centred on AI-persona alignment, SME adoption, brand equity modelling, and cross-cultural personalization. It provides hands-on guidance on how to manage strategic, ethical, and imaginative aspects of AI in marketing.