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Informative Article | Computer Science and Information Technology | India | Volume 8 Issue 8, August 2019 | Popularity: 6.2 / 10

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The AI Advantage: Assessing Personalization Effects on E-commerce Shopping Behaviors

Tarun Gupta, Supriya Bansal

Abstract: Artificial intelligence (AI) enables more predictive and personalized experiences in e-commerce platforms through data-driven recommendations and promotions. However, poor timing or low relevance from imperfect algorithms can damage the shopping experience. This mixed methods study analyzes the impact of AI personalization on consumer perceptions, attitudes, and behaviors using surveys of 1500 consumers, in-depth interviews, and analysis of interaction data from e-commerce sites employing AI at varying levels. Results show personalized recommendations increased click-through rate by 19%, drove 25% more site visits, lifted add-to-cart rates by 14% for new customers and 11% for return customers, and boosted order completion by 14%, compared to non-personalized approaches. Sites with extensive AI personalization saw 18% conversion gains versus 8% for minimal personalization. Millennials exhibited higher receptiveness. Conversion impact was also greater for travel, subscriptions, and consumers with higher site trust. Over-personalization causing choice overload risks damaging experiences. This comprehensive analysis provides robust evidence that AI-driven personalization significantly enhances key metrics but must be applied strategically. The results assist e-commerce providers in crafting effective AI implementation and personalization strategies tailored to their business model and target demographics.

Keywords: E-commerce, artificial intelligence, machine learning, personalization, recommendations, consumer behavior, consumer attitudes, metrics, demographics

Edition: Volume 8 Issue 8, August 2019

Pages: 2313 - 2320

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