The role of AI in transforming consumer behavior

Abstract

Artificial intelligence (AI) continues to have a growing presence in consumer-centric industries and is transforming the way people interact with brands and make purchasing decisions. From personalizing recommendations to simulating human-like conversations, AI tools are reshaping consumer expectations regarding convenience, trust, and personalization. This study reviews previous research on the use of AI in sectors such as retail, banking, healthcare, and digital marketing to explore how AI influences consumer behavior in real-world settings. The findings indicate that AI enhances personalization, improves service quality, and guides consumers throughout their purchasing journey, resulting in a more satisfying buying experience. Although AI adoption has contributed to business growth and increased consumer responsiveness, transparency and trust remain critical to its acceptance. Several studies have shown that the COVID-19 pandemic accelerated the integration of AI into consumers' everyday purchasing habits, with many consumers indicating that they intend to continue shopping online in the post-pandemic era. Despite these benefits, concerns regarding data privacy, user control, and authenticity persist. This review synthesizes previous findings and identifies key directions for future research on the role of AI in transforming consumer buying behavior.