Enhancing Customer Experience in Electronic Commerce: Role of Artificial Intelligence in Personalization and its Ethical Implications
Enhancing Customer Experience in Electronic Commerce: Role of Artificial Intelligence in Personalization and its Ethical Implications

Author(s): Marija Smilevska, Nadica Jovanovska Boshkovska, Ilijana Petrovska, Ivona Mileva
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: E-commerce; Artificial intelligence; Personalized recommendations; Customer experience; Ethics
Summary/Abstract: The rise of artificial intelligence (AI) has transformed electronic commerce (e-commerce), with AI-powered personalization becoming essential for enhancing customer experiences. This paper explores the impact of AI-driven personalization on e-commerce, enhancing customer experience and the ethical implications. Using a mixed-methods approach, data from 78 participants show that personalized recommendations significantly boost shopping efficiency and brand loyalty, with 97.4% of respondents noticing personalization and 56.4% finding it highly useful. However, 51% expressed concerns about data privacy. The findings highlight the need for transparency and strong data protection to maintain consumer trust. In conclusion, the study emphasizes the need for a balanced approach to AI personalization, where e-commerce platforms can leverage AI’s benefits while addressing ethical concerns and privacy issues. The research offers valuable insights for both academic and industry professionals seeking to improve customer experience through responsible AI use.

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