Artificial intelligence-driven personalization in digital marketing: effects on customer experience, purchase intention, and AI-supported managerial responsiveness

Abstract

Artificial intelligence (AI)-driven personalization has become a central strategy in digital marketing; however, existing studies provide a limited understanding of how AI simultaneously influences customer experience, consumer behavior, trust, and perceived organizational responsiveness. This study examines the effects of AI-driven personalization on customer experience, purchase intention, consumer trust, and perceived organizational responsiveness within the Indonesian digital market. A quantitative approach was employed using survey data collected from 402 users of e-commerce and fintech platforms in Indonesia, which were analyzed using Structural Equation Modeling–Partial Least Squares (PLS-SEM). The findings reveal that AI-driven personalization significantly enhances customer experience, which subsequently increases purchase intention. AI-based predictive analytics also demonstrates a significant positive relationship with perceived organizational responsiveness, indicating that consumers associate AI-enabled analytical capabilities with more timely and effective organizational responses to customer and market needs. Furthermore, customer experience serves as an important mediating mechanism, while perceived privacy risk weakens the positive relationship between AI-driven personalization and consumer trust. By aligning the organizational dimension with the perspective of consumer respondents, this study contributes an integrated understanding of how AI-driven personalization and predictive analytics shape consumer experiences and perceptions of organizational responsiveness in an emerging digital economy.