AI-Driven Marketing Automation and Its Impact on Customer Engagement in Middle East and Asia

Abstract

The introduction of AI-based marketing automation technology represents a new innovative approach to enabling customers to receive personalized and timely marketing messages. Although AI-powered marketing technology has gained increased popularity, there is very little research that explores the psychological processes associated with AI marketing technology and its effect on the engagement and loyalty of customers within digitally transforming markets. The current study focuses on understanding the effects of AI-based marketing automation technology on customer engagement from the perspective of TAM, SOR theory, and Customer Engagement theory.
A sequential explanatory mixed methods design was used in which quantitative analysis based on PLS-SEM analysis was complemented with a qualitative thematic analysis. The proposed framework explores the relationship between AI-based marketing automation, customer trust, perceived personalization, customer engagement, and customer loyalty with privacy issues, culture, and digital literacy serving as moderating variables.
It was found that marketing automation through artificial intelligence is a major contributor towards personalized experiences, and this, in turn, contributes towards building customer trust and engagement. Customer trust acts as a major mediating factor for linking AI-enabled experiences with engagement outcomes, and customer engagement, in turn, has a significant effect on building customer loyalty. It was also discovered that privacy issues negatively impact the development of trust, while digital literacy and favorable culture positively contribute towards customer engagement when they encounter AI-enabled experiences.