Exploring the Impact of AI-Driven Personalization on Consumer Engagement inDigital Marketing.

<b>Research background and purpose:</b> This study examines AI-driven impact personalization on consumer engagement within Saudi Arabia’s digital marketing landscape, aligning with Vision 2030 objectives. It underscores the transformative potential of artificial intelligence in enhancing customer interaction, satisfaction, and loyalty by delivering tailored experiences that address consumer preferences. The research focuses on key factors—ethical considerations, technological readiness, organizational culture, and cost—that influence the effectiveness of AI-driven personalization, providing insights into fostering robust consumer relationships and supporting Saudi Arabia’s digital transformation initiatives. <b>Design/methodology/approach: </b> The study uses a descriptive-analytical approach to explore the relationship between AI-driven personalization and consumer engagement. Researchers collected data through a structured questionnaire distributed to a randomly selected sample of 350 participants and analyzed 300 valid responses. They applied statistical methods, including descriptive statistics and correlation analysis, to examine the relationships between variables. Additionally, Cronbach’s alpha evaluated the reliability of the research instruments. <b>Findings:</b> The study reveals a significant positive relationship between AI-driven personalization and consumer engagement. Ethical considerations, particularly data privacy and transparency (correlation coefficient = 0.81), play the most influential role by emphasizing the need for secure and transparent data practices to build trust. Organizational culture (0.75) also plays a crucial role, with innovation and professionalism strengthening consumer trust and loyalty. Technological readiness and cost further enhance engagement, as organizations leverage advanced AI technologies and strategic pricing to deliver personalized experiences. Participants appreciate the convenience, efficiency, and tangible benefits provided by these personalized services. <b>Value added and limitations:</b> This study provides critical insights into the role of AI in Saudi Arabia’s digital economy, emphasizing the integration of ethical standards and technological innovation to gain a competitive edge. However, reliance on self-reported data and a geographically confined sample may limit generalizability. Future research should include broader demographics and additional variables to expand these findings.