Brand Trust in AI-Driven E-Commerce Personalization: The Well-Being–Privacy Trade-Off

The rapid advancement of artificial intelligence (AI) in e-commerce has intensified data-driven personalization, raising important questions about its psychological implications for consumers and its role in shaping sustainable and responsible digital business practices. This study examines how AI-driven personalization affects consumer psychological well-being in the Turkish e-commerce market and investigates the roles of privacy concerns and brand trust in shaping this relationship from a social sustainability and responsible AI perspective. The research develops and empirically tests an integrated model comprising perceived personalization, privacy concerns, psychological well-being, and brand trust. Survey data from 400 active e-commerce customers were analyzed using partial least squares structural equation modeling (PLS-SEM). Findings show that both perceived relevance and perceived specificity significantly enhance psychological well-being by reducing cognitive overload and increasing perceived value. However, these personalization dimensions also increase privacy concerns, with perceived specificity exerting a notably stronger effect. Privacy concerns negatively affect psychological well-being and competitively mediate the relationship between personalization and well-being, reflecting the Personalization–Privacy Paradox in AI-driven e-commerce contexts. Moreover, brand trust significantly moderates this dynamic by weakening the harmful impact of privacy concerns on psychological well-being. Overall, the findings indicate that privacy concerns represent a latent social cost that can undermine the long-term sustainability of data-intensive business models when not governed by trust-based mechanisms.