The Impact of AI-Driven Personalization on Consumer Trust and Loyalty in E -Commerce
The Impact of AI-Driven Personalization on Consumer Trust and Loyalty in E- Commerce

Author(s): Dare Adekoya
Subject(s): Social Sciences, Economy, Business Economy / Management, Communication studies, Theory of Communication, Marketing / Advertising, ICT Information and Communications Technologies
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: AI-driven Personalization; Consumer Trust; Consumer Loyalty; E-commerce; Data Privacy; Ethical AI
Summary/Abstract: This study examines how AI-driven personalization in online shopping influences consumer trust and loyalty. While AI’s impact on customer satisfaction is well-studied, its role in building trust remains less explored. Through in-depth interviews with 35 regular online shoppers, the research finds that AI personalization fosters trust by delivering relevant, customized experiences. However, concerns about data privacy and transparency can undermine this consideration if not adequately addressed. The study also reveals that trust established through AI personalization strongly encourages repeat purchases and brand loyalty, particularly when the personalization matches consumers’ preferences and needs. These findings highlight the importance for online retailers to balance personalized experiences with privacy considerations to build and maintain lasting consumer relationships. Overall, this research advances the understanding of consumer behavior, digital trust, and the strategic use of AI in retail environments.

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