Role of AI in Consumer Decision-Making Processes

The integration of Artificial Intelligence (AI) and social media has significantly transformed consumer behavior and digital marketing strategies. This paper explores how AI enhances personalization through data-driven product recommendations, targeted advertising, and real-time customer service via chatbots. Simultaneously, social media serves as a dynamic platform for consumer-brand interaction, shaping brand image through user-generated content, influencer marketing, and community engagement. These technologies collectively improve customer experience, foster loyalty, and influence purchasing decisions. However, their implementation also presents challenges, including data privacy concerns, over-personalization, and the risk of inauthentic content damaging brand trust. The study highlights the importance of ethical and strategic use of AI and social media to maximize their potential in building strong, lasting relationships with consumers in the increasingly competitive digital marketplace.