Role of Artificial Intelligence in Shaping Consumer Behaviour in Digital Environments

Abstract

Artificial Intelligence (AI) has emerged as a transformative force in digital environments, fundamentally reshaping how consumers search, evaluate, and make decisions. This paper develops a comprehensive conceptual framework to examine the role of AI in shaping consumer behaviour across digital platforms. Drawing on interdisciplinary literature up to 2023, the study integrates key AI-driven mechanisms—personalization, predictive analytics, recommendation systems, and conversational agents—with established behavioural theories, including the Stimulus–Organism–Response (S-O-R) model, Technology Acceptance Model (TAM), and Theory of Planned Behaviour (TPB).The framework conceptualizes AI as a dynamic and adaptive stimulus that influences consumer cognition and affect through mediating variables such as trust, perceived usefulness, and perceived risk. Furthermore, the model incorporates moderating factors including privacy concerns, digital literacy, and cultural context to explain variations in consumer responses. The study also critically addresses ethical considerations, including algorithmic transparency, data privacy, and consumer autonomy. By synthesizing fragmented literature into a unified framework, this paper contributes to both theory and practice by offering a deeper understanding of AI-driven consumer behaviour. The proposed model provides a foundation for future empirical research and offers actionable insights for organizations seeking to leverage AI while maintaining trust and ethical responsibility in digital marketing environments.