The Role of AI in Predicting Consumer Behaviour and Effective Marketing Strategies

Abstract

Artificial Intelligence (AI) has become an important tool in analysing and predicting
consumer behaviour. With its big data processing capabilities, AI can assist companies
in developing more effective and efficient marketing strategies. This research aims to
analyse the role of AI in understanding consumer behaviour patterns and their
implications for marketing strategies. The method used in this research is a literature
study that includes various journals, industry reports, and case studies. The results show
that AI provides significant advantages in increasing sales conversions, optimising
marketing costs, and strengthening relationships between companies and customers.
However, challenges such as data privacy and algorithm transparency remain major
concerns in the application of this technology. Therefore, an ethical and sustainable
strategy in adopting AI is required so that the benefits can be optimised without
compromising customer trust. This research provides insights for academics and
business practitioners in understanding the impact of AI on consumer behaviour and
developing more innovative and data-driven marketing strategies.