Factors Influencing AI-Driven Personalization on Consumer Trust and Purchase Intent among Gen-z

Introduction 1.1 Study Background The advent of the fourth industrial revolution has entered a time in which information is now being termed as the “new oil” of the world economy. In the field of marketing and business intelligence, this shift is best observed by introducing Artificial Intelligence (AI) to consumer touchpoints. In the past, marketing processes were based on the principles of regional demographic segmentation; nowadays, the modern digital environment requires hyper-personalization. AI-based customization The application of machine learning algorithms to consumer behavior, tastes and purchase history to provide them with personalized content has turned into the new standard of competitive edge. In the contemporary business environment, firms are using predictive analytics to determine consumer requirements in advance before they are directly expressed. Amazon recommendation engines, Spotify curated playlists, the algorithm-driven shopping feeds of Instagram, and Chatbots are all the forms of AI serving as silent betweeners between the brand and the buyer. In the case of the prospective business, it is a two-fold goal of such systems to cut the search cost of the consumer and to maximize the Customer Lifetime Value (CLV).