The Role of AI in Predicting Consumer Behaviour and Optimizing Marketing Campaigns

Artificial Intelligence (AI) is redefining the marketing landscape by enabling businesses to forecast consumer behavior and optimize campaign strategies with unprecedented accuracy. This paper explores the transformative impact of AI-driven tools—including machine learning, predictive analytics, and automation—on modern marketing practices. Employing a mixed-method approach, the study gathers insights from digitally active Indian consumers through surveys and from industry experts via interviews. Findings reveal that AI enhances personalization, engagement, and overall marketing performance. However, challenges such as data privacy concerns, algorithmic opacity, and over-reliance on automation persist. This study underscores the importance of ethical AI integration and offers actionable guidelines for marketers to align AI use with consumer trust and campaign effectiveness.