Impact of AI Personalization on Customer Retention in E-Commerce

Artificial Intelligence (AI) has become increasingly prevalent in e-commerce, which has drastically altered how businesses interact with their clients, particularly through personalization. The purpose of this study is to investigate the function of AI personalization in relation to e-commerce client retention. Recommendation systems, pricing, content, and marketing are just a few of the AI personalization technologies that are increasingly essential to raising consumer pleasure and engagement. This study's main objective is to assess how perceived personalization affects customer retention, particularly with regard to mediating factors like satisfaction and trust. The study used a quantitative research methodology and collected primary data from e-commerce website customers using a questionnaire survey. To verify the proposed relationship between the variables, statistical methods such as Structural Equation Modeling (SEM) are also used. It is anticipated that the study's findings would demonstrate how well AI-based customisation enhances customer pleasure and trust, both of which support client retention. Additionally, the study looked into how privacy concerns can moderate the relationship between customer retention and personalization. By offering actual proof of the efficiency of AI-based personalization in keeping clients in cutthroat markets, the study adds to the body of previous studies. Additionally, the study offers e-commerce businesses useful advice on how to create ethically sound AI-based personalization strategies. The report also discusses limitations and future research directions .