IMPACT OF AI POWERED PERSONALIZATION ON CONSUMER PURCHASE DECISIONS IN E COMMERCE PLATFORMS

AI-based personalization has been a key to the modern e-commerce and it changes the shopping experience of a particular consumer dynamically. This paper looks at the effect of this type of personalization on the consumers as they make purchase decisions. To evaluate the change in purchase behavior, purchase intent, and purchase perceptions, a mixed-method design was used, that is, a controlled experiment on a simulated e-commerce platform and a survey among consumers. The findings suggest that customized recommendations and content lead to a significant increase in the conversion rates and purchase intentions, which becomes evident in previous research outcomes, which suggest that congruent product suggestions have a significant positive impact on sales[1][2]. Also, personalization provided customer satisfaction as it assisted in finding the appropriate product, but over personalization brought privacy and trust issues. Figure 1 demonstrates the increase in the purchase rates provided in personalized conditions and Table 1 presents the main differences of the result. We discuss the balance between maximization of benefits of personalization as well as reducing risks associated with consumer trust. The paper will be part of an enhanced academic knowledge of the role of AI-driven personalization with influencing consumer behavior and provide practical implications to the e-commerce platforms that will want to apply AI with ethical and effective ways to influence purchases.