AI-POWERED PERSONALIZATION: OPPORTUNITIES AND CHALLENGES IN DIGITAL MARKETING

Abstract

The fast-paced growth of artificial intelligence (AI) has completely transformed the landscape of digital marketing, allowing for real-time, data-driven personalization strategies. This research paper delves into the opportunities and challenges that come with AI-powered personalization, specifically looking at consumer perspectives in Raipur City. The goal of the study is to evaluate how aware consumers are, their level of engagement, and their trust in AI-driven personalization, as well as how they perceive its value in marketing practices. A descriptive research design was used, and primary data was gathered through a structured questionnaire from a group of 50 respondents aged between 20 and 50 years. The results show that a significant majority of participants recognize the advantages of AI personalization, especially in boosting user engagement, customer satisfaction, and overall marketing effectiveness. However, there were also notable concerns regarding data privacy, ethical transparency, and trust in automated systems. Key insights from questions about perceived usefulness and privacy issues were analysed in line with the research objectives and hypotheses, confirming that while AI enhances the digital experience, it also requires strong governance frameworks. This study adds to the growing body of literature by providing empirical insights into consumer attitudes and offering strategic recommendations for marketers and researchers who want to strike a balance between personalization and responsible AI practices.