THE ROLE OF ARTIFICIAL INTELLIGENCE IN ENHANCING CONSUMER ENGAGEMENT AND BRAND LOYALTY

AUTHOR– SUBRATA MONDAL, PGDM STUDENT, GIBS BUSINESS SCHOOL, BANGALORE

BEST CITATION – SUBRATA MONDAL, THE ROLE OF ARTIFICIAL INTELLIGENCE IN ENHANCING CONSUMER ENGAGEMENT AND BRAND LOYALTY, ILE MULTIDISCIPLINARY JOURNAL, 4 (1) OF 2025, PG. 203-213, APIS – 3920-0007 | ISSN – 2583-7230.

ABSTRACT

In an era marked by rapid technological advancements, artificial intelligence (AI) has revolutionized the marketing landscape, redefining how businesses engage with consumers and cultivate brand loyalty. This study provides a comprehensive integrated literature review of AI’s role in enhancing consumer engagement and brand loyalty, synthesizing findings from 40 peer-reviewed research articles published between 2003 and 2023.

Our research reveals that AI technologies, including chatbots, predictive analytics, and recommendation systems, have significantly improved real-time personalization, fostering deeper emotional connections between brands and consumers. However, while AI-driven marketing strategies have proven effective, challenges such as data privacy concerns, algorithmic bias, and transparency issues persist, potentially undermining consumer trust.

This study identifies critical gaps in the existing literature, such as the need for unified theoretical frameworks and a greater focus on ethical AI practices. Furthermore, the findings emphasize the transformative potential of AI in delivering personalized consumer experiences, driving long-term loyalty, and offering businesses a competitive edge. The implications of this research extend to marketing practitioners, policymakers, and academics, highlighting the importance of integrating AI strategically and ethically. As businesses continue to adopt AI technologies, this research underscores the necessity of balancing innovation with ethical responsibility to ensure sustainable consumer relationships.

Keywords – Artificial Intelligence (AI), Consumer Engagement, Brand Loyalty, Personalization, Predictive Analytics, AI-Driven Marketing, Algorithmic Bias, Customer Relationship Management (CRM)