A Study of AI’s Expanding Role in Personalized Digital Marketing Beyond Automation: Key Issues and Challenges

Artificial Intelligence (AI) has moved beyond basic automation and is now reshaping personalized digital marketing. Instead of simply automating emails or scheduling advertisements, AI today analyzes behavioural patterns, predicts preferences, and delivers hyper-personalized experiences across platforms. This study explores how consumers perceive AI-driven personalization, its effectiveness beyond automation, and the key challenges associated with its growing use. Primary data was collected from 108 respondents through a structured questionnaire. The findings indicate that a majority believe AI improves customer understanding and goes beyond automation. Social media and e-commerce platforms are perceived as the most effective users of AI personalization. However, data privacy concerns remain the biggest challenge identified by respondents. The study concludes that while AI-driven personalization enhances customer experience, ethical and transparency issues must be addressed for sustainable growth.