The Impact of AI Personalization on Consumer Trust and Purchase Intention on Online Retail

Carina Perez

College: College of Business and Public Management

Major: BS.MARKETING

Faculty Research Mentor: Salehi, Reza Fazli

Abstract:

Online retailers increasingly use artificial intelligence (AI) in order to provide personalized product recommendations based on customers’ browsing and purchase history. These recommendations appear as suggested items such as “You may also like” or “Recommended for you.” While personalization is designed to improve the shopping experience for consumers, it is very important to understand how it influences customer trust and purchase decisions. This study examines how personalized recommendations affect consumers’ trust in an online retailer and their intention to make a purchase.This research takes a conceptual approach by reviewing existing academic literature on artificial intelligence in marketing, personalization strategies, consumer trust, and online purchase intention. Prior studies suggest that when customers perceive recommendations as relevant and helpful, they are more likely to feel understood and valued by the brand. This perception can increase trust and strengthen purchase intention. However, research also shows that if personalization feels intrusive or overly invasive, it may create discomfort and reduce trust in the brand as a whole because of the consumer feeling intruded.The findings of this conceptual analysis show that the effectiveness of personalized recommendations depends on how consumers interpret them. When transparency, relevance, and perceived usefulness are there, personalization can positively influence both trust and buying behavior. This study contributes to the understanding of AI driven marketing strategies and highlights the importance of balancing personalization with consumer privacy concerns in online retail environments.Keywords: Artificial intelligence, Personalization, Consumer trust, Purchase intention, Online retail