Impact of AI-Enabled Personalization on Impulse Buying Behaviour in Online Shopping Platforms

Abstract

The high rate of adoption of Artificial Intelligence (AI) in online retailers has revolutionized the way consumers shop as a result of dynamic personalization approaches. The recommendation of products, advertisements, prices, and content are done using AI-based personalization, which relies on data analytics, machine learning algorithms, and predictive modeling to adjust personal preferences to specific consumers. Though personalization increases convenience and relevance, it as well has major implications on impulse buying behaviour. Impulse buying is spontaneous, unplanned purchases that are driven by the emotions, situational stimuli and psychological stimuli.
This paper will set out to review the effects of AI-facilitated personalization on impulse buying behaviour in online shopping sites using the secondary research methodology. The article summarizes the results of peer-reviewed publications, academic books, and industrial reports concerning between 2018 and 2024. The research will capture thematic dimensions that determine the most dominant dimensions of impact of personalized recommendations, real-time targeting, dynamic pricing, urgency cues, and algorithm-based social evidence to make impulse purchases using thematic analysis.
The results indicate that personalization with the use of AI has a powerful effect on increasing the tendencies towards impulse buying due to less cognitive effort, better emotional involvement, and the perception of urgency. Nevertheless, ethical issues and worries about the safety of data, the manipulation of algorithms, etc. Could cool down consumer reactions. The research is relevant to current literature because it combines the concept of AI personalization with the existing theories of impulse buying. Managerial implications highlight the need to consider ethical approaches to personalization and open AI practices to retain consumer confidence and ensure sales performance.