AI-Driven Personalization in Marketing: Impact of Artificial Intelligence on Tailored Marketing Campaigns in the Indian Banking Sector

The integration of artificial intelligence (AI) into marketing has transformed customer engagement strategies, particularly in the banking sector where personalization and trust are critical determinants of competitive advantage. AI-driven personalization enables banks to analyze customer data and deliver customized products, services, and communications in real time. This study empirically examines the impact of AI-driven personalization on customer engagement, customer satisfaction, and purchase intention in the Indian banking sector, while also evaluating the moderating role of customer privacy concerns. Using a quantitative research design, primary data were collected from 320 customers of public and private sector banks in India through a structured questionnaire. Data analysis was conducted using SPSS, employing descriptive statistics, reliability testing, correlation analysis, and multiple regression analysis. The results indicate that AI-driven personalization significantly and positively influences customer engagement and satisfaction, which subsequently enhance purchase intention. However, privacy concerns were found to negatively moderate the relationship between AI-driven personalization and purchase intention. The findings contribute to the growing body of literature on AI-enabled marketing by providing empirical evidence from an emerging economy context. The study offers valuable managerial insights for banking institutions to design effective, ethical, and customer-centric AI-driven marketing strategies while addressing data privacy concerns.