AI-DRIVEN PERSONALIZATION IN DIGITAL MARKETING: OPPORTUNITIES AND CHALLENGES

Abstract

Artificial Intelligence (AI) has transformed the landscape of digital marketing by enabling highly personalized customer experiences. Through data-driven insights, AI algorithms can analyze consumer behavior, preferences, and interactions in real-time to deliver tailored content, product recommendations, and targeted advertising. This shift toward AI-driven personalization not only enhances customer satisfaction and engagement but also improves conversion rates and brand loyalty. However, this advancement brings forth a set of challenges, including data privacy concerns, algorithmic biases, and the need for transparency in automated decision-making. This paper explores the key opportunities and limitations associated with AI-based personalization in digital marketing, emphasizing the importance of ethical practices, data governance, and the continuous adaptation of AI technologies to align with dynamic consumer expectations.