ARTIFICIAL INTELLIGENCE-DRIVEN DIGITAL MARKETING STRATEGIES AND THEIR IMPACT ON BUSINESS PERFORMANCE: AN INFORMATION TECHNOLOGY AND MANAGEMENT PERSPECTIVE

Abstract

Artificial intelligence (AI) is changing the face of digital marketing in several ways, such as the ability to analyze customer data, customize marketing communication, automate processes, predict consumer behavior, and optimize strategic decisions. The purpose of this review is to discuss the contribution of AI-based digital marketing strategies and its implications for business performance from an integrated approach of information technology and management. The relevant literature was critically reviewed from recent published peer-reviewed articles, to highlight the key applications of AI, the performance outcomes, the technical requirements, the managerial factors, and the challenges in implementing AI. AI-driven personalization, predictive analytics, marketing automation, conversational AI, recommendation systems, programmatic advertising, AI-powered customer relationship management, and generative AI can enhance customer engagement, marketing effectiveness, operational efficiency, customer retention, and even financial performance, according to the literature. The advantages of adopting AI, however, are not guaranteed and rely on data quality, IT infrastructure, system integration, managerial skills, employee capabilities, strategic alignment and organizational readiness. Beyond the obvious benefits, there are several other factors that impact the success and long-term viability of AI-powered marketing, including privacy considerations, algorithmic bias, transparency, cybersecurity, and customer trust. In overall terms, AI ought to be looked at not simply as a technological tool but as a strategic capability for organizations, which will incorporate technology, marketing, and management. The review underscores the need for human-AI partnership and responsible governance to realize the potential of AI-driven digital marketing investments for sustainable business value and competitive advantage.