Impact Of Artificial Intelligence On Consumer Behavior₆38

Artificial Intelligence (AI) is no longer just a futuristic concept; it has quietly become a part of our daily lives, influencing the way people search, shop, and interact with brands. From personalized recommendations on e-commerce platforms to virtual assistants answering queries in real time, AI has started to reshape how consumers make decisions. This research paper focuses on understanding the impact of AI on consumer behaviour, looking beyond the technology itself to explore how it changes trust, buying patterns, loyalty, and expectations. The study examines how AI creates value by offering convenience and personalization—consumers now expect brands to "know them" and provide solutions tailored to their needs. At the same time, it highlights challenges such as privacy concerns, over-reliance on algorithms, and the risk of losing the human touch in brand–consumer relationships. By analysing existing studies, market practices, and consumer perceptions, this paper aims to bridge the gap between technological advancement and human psychology. Ultimately, the research argues that AI is not just influencing consumer choices but also shaping a new kind of consumer—more informed, more connected, and more demanding. Businesses that can balance AI-driven efficiency with ethical responsibility and genuine human engagement will be the ones to build lasting trust in the age of intelligent technology.