This study examines the impact of Artificial Intelligence (AI) and Digital Marketing on Consumer Purchase Intention. Through a sample of 400 respondents from North-West India, comprising both males and females across different age groups, data was collected via an online survey questionnaire. Statistical analyses, including independent t-tests, one-way ANOVA, and regression, were employed to assess the relationships between these variables. The findings indicate that gender does not significantly influence purchase intention, while age groups exhibit slight variance. However, the presence of AI and Digital Marketing significantly impacts consumer purchase intention, highlighting the importance of adopting AI-driven digital marketing strategies for businesses. Ethical considerations surrounding data privacy and transparency are crucial in leveraging AI effectively. Overall, this study underscores the transformative potential of AI and Digital Marketing in shaping consumer behavior and driving purchase intention, providing insights for businesses aiming to navigate the dynamic digital landscape effectively. The practical implications of the study's findings are significant for organizations seeking to improve their digital marketing efforts.
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Artificial Intelligence (AI) and digital marketing have revolutionized consumer engagement and buying behaviour in today's fast-paced, digitally-driven business environment. AI-driven solutions have made it possible for companies to offer customized experiences to each customer, including chatbots, recommendation algorithms, and personalized content distribution (Ng, 2019). Concurrently, digital marketing platforms have expanded to include a diverse range of channels, ranging from email marketing and social media to search engine optimization and content marketing (Chaffey & Ellis-Chadwick, 2019). Businesses may face new opportunities as a result of the possibility of a major impact on consumers' purchase intentions through the integration of AI and digital marketing methods. Artificial intelligence, or AI for short, has grown to be a crucial component of contemporary corporate operations. Artificial Intelligence (AI) comprises a diverse range of technologies, such as machine learning, natural language processing, and data analytics, all of which have found extensive use in the field of marketing. With the use of artificial intelligence (AI), companies can provide customers with tailored and data-driven experiences like product suggestions, chatbots for customer support, and predictive analytics for targeted advertising (Kapoor et al., 2017). Customers' views, attitudes, and ultimately their intention to buy are greatly influenced by this personalization and data-driven decision-making.
However, during the past 20 years, digital marketing has experienced a spectacular metamorphosis that has been shaped by the ever-expanding digital ecosystem. Digital marketing is a wide variety of operations that include email campaigns, social media advertising, content marketing, and search engine optimization (SEO). According to Chaffey (Chaffey & Ellis-Chadwick, 2019), the use of artificial intelligence (AI) in digital marketing tactics has resulted in increased marketing efficiency and the ability for organizations to engage with consumers in more relevant and targeted ways. As a result, it's become more important to comprehend how AI and digital marketing work together to influence consumer buying intentions. In marketing literature, the idea of consumer buying intention is essential. It is a crucial step before actual purchase behaviour and refers to a consumer's inclination or propensity to acquire a good or service (Engel et al., 1995). Purchase intentions of consumers are impacted by several variables, such as personal preferences, perceived value, trust, and perceived risk. By improving customization, offering real-time information, and optimizing the entire customer experience, the incorporation of AI into digital marketing strategies might impact these variables and eventually influence consumers' desire to purchase (Hajli, 2015).
AI technology integration with digital marketing strategies has completely changed how businesses communicate with customers by providing previously unheard-of levels of personalized and targeted communication. Large volumes of consumer data, including internet activity and demographic data, are analyzed by AI-powered algorithms to provide actionable insights into personal preferences and purchasing patterns. The relevance and efficacy of marketing campaigns can be increased by using strategies like machine learning and the processing of natural language, which allow marketers to customize their offerings and messaging to appeal to the particular requirements and preferences of each consumer category. The potential of AI to provide hyper-personalization is one of the main factors determining its effectiveness in influencing consumer purchase intention. Through the use of AI algorithms, marketers can provide customers with highly personalized information and recommendations, making their shopping experience more immersive and engaging. AI-powered solutions may effectively affect consumer behaviour at many phases of the buying process. A few examples of these stages include personalized product suggestions, dynamic pricing tactics, and targeted advertising campaigns. Customers are therefore more likely to find value in the products and services that are made available to them, which increases buy intent and conversion rates for companies.