Exploring the influence of AI-driven personalization capabilities on consumer purchase intention: The mediating role of customer engagement

This study examines the influence of AI-driven personalization capabilities on consumer purchase intention, focusing on the mediating role of customer engagement. It explores how recommendation accuracy, real-time adaptation, and predictive analytics capability enhance customer engagement in digital commerce. Data were collected from 473 online consumers using a questionnaire and analyzed using Structural Equation Modeling with SmartPLS. The findings reveal that all three AI-driven personalization dimensions significantly and positively affect customer engagement. In turn, customer engagement has a strong positive impact on purchase intention. Moreover, customer engagement was found to mediate the relationships between AI-driven personalization capabilities and purchase intention, confirming its critical role in translating technological capabilities into consumer behavior. All hypotheses were statistically supported. This study enriches the literature on AI in marketing context by clarifying how personalization capabilities influence consumer decisions. It also provides practical insights for businesses aiming to enhance engagement and increase purchase intention through advanced AI-driven personalization strategies.