Artificial Intelligence (AI) has emerged as a pivotal technology within the marketing sector, enabling organizations to deliver personalized, data-driven, and real-time services to consumers. As organizations increasingly integrate AI systems to improve customer experiences and enhance marketing efficiency, it is essential to understand consumer reactions to these technologies. This study investigates the influence of AI-driven personalization and perceived utility on trust, customer engagement, and purchase intentions among consumers in Delhi. A survey involving 378 respondents was conducted employing Partial Least Squares Structural Equation Modeling (PLS-SEM). The results demonstrate that personalization significantly enhances trust in AI-powered marketing strategies, while perceived utility positively influences engagement. Trust also demonstrated itself as a significant predictor of consumer engagement, which in turn has a considerable impact on purchase intention. The findings underscore the importance of transparent and user-centered AI strategies in cultivating positive consumer perceptions. This study provides both theoretical advancements to the AI marketing literature and practical recommendations for organizations seeking to adopt AI responsibly.
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