Evaluating the Impact of AI-Driven Personalisation on Consumer Behaviour in E-Commerce

an analysis of user experience and data privacy concerns

Abstract

This study investigated how AI-driven personalization in e-commerce impacts consumer behaviour , focusing on enhancing user experience and data privacy implications. The research aimed to understand the balance between tailored shopping experiences and personal information protection in the age of AI. A qualitative approach was adopted, including nine semi-structured interviews with e-commerce platform users. The research shows that AI personalization creates a better shopping experience through suggestions, increasing user interaction and potentially leading to more sales. Consumers value personalization as it helps them in decision making as well as in discovering products which they might need. But the research also reveals that the consumers have several concerns over the safety and privacy of them personal information. The findings of the research point to the fact that there is a critical need for e-commerce sites to provide personalization with strong emphasis on data protection to keep and build customer trust.  These results underscore the dual imperatives for e-commerce businesses: to expand the use of AI for personalization, yet also increase the data protection measures to meet the consumers’ concerns. This research is useful in understanding how e-commerce businesses can effectively implement AI in personalization while avoiding ethical issues.