The influence of artificial intelligence on consumer behaviour

decision-making, purchase behaviour and brand loyalty

Abstract

The rapid advancement of artificial intelligence (AI) technologies has significantly impacted the relationship between consumers and brands, transforming the market and the marketing strategies adopted by brands. This literature review explores the influence of AI on consumer behavior, focusing on decision-making processes, purchasing behavior, and brand loyalty. The findings reveal that AI simplifies consumers' decision-making by providing personalized recommendations and enabling autonomous decision-making processes, which reduce effort and time spent on purchases. Moreover, AI enhances consumer engagement on social media platforms, leading to increased customer satisfaction and purchase intention. However, the implementation of AI raises ethical concerns, emphasizing the need for fair and transparent algorithmic decisions that respect consumers' moral standards. The perceived humanity of AI interfaces plays a crucial role in fostering strong consumer-brand connections and loyalty. Chatbots and voice assistants, in particular, have been shown to influence brand loyalty due to their features, including availability, ease of use, and personalization. The quality of service recovery, conversation quality, and core service satisfaction offered by AI chatbots also contribute to consumer satisfaction and loyalty. This review highlights the transformative impact of AI on consumer-brand interactions and provides valuable insights for marketing professionals aiming to integrate AI into their strategies effectively, while also addressing ethical considerations.