Beyond the algorithm: How artificial intelligence-driven consumer insights shape young consumers' purchasing behavior in the age of privacy paradox

Ali Alsiehemy ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 7, 449-459

Abstract: This study examines the impact of artificial intelligence (AI)-driven consumer insights on the purchasing behavior of young consumers, with a focus on the mediating role of perceived personalization and the moderating effect of privacy concerns. Grounded in the Technology Acceptance Model and privacy calculus theory, the study adopts a quantitative research design. Survey data were collected from 376 consumers in the Middle East, and the hypotheses were tested using structural equation modeling. The findings reveal that AI-driven consumer insights significantly enhance purchasing behavior through perceived personalization. However, high levels of privacy concern diminish this effect, indicating a conditional relationship. The research highlights the dual role of personalization and privacy in shaping consumer responses to AI-driven marketing, offering new theoretical insights into digital consumer behavior. Marketers and AI developers should strike a balance between personalization efforts and transparent privacy practices to maintain consumer trust and engagement in AI-powered environments.

Keywords: AI-driven consumer insights; Middle East; Perceived personalization; Privacy concerns; Purchasing behavior. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:aac:ijirss:v:8:y:2025:i:7:p:449-459:id:10460

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