AI-driven personalization and purchase intention in modest fashion: Sharia compliance as moderator

Purpose – This study analyzes the effect of AI-based personalization on purchase intention in Pakistan’s modest-fashion e-commerce market, emphasizing the moderating role of Sharia law compliance. Given the religious and cultural significance of modest fashion, this study explores how individual recommendations aligned with Islamic teachings influence consumer behavior.Methodology – A quantitative method was employed using SmartPLS for structural equation modeling. Data were collected from 211 participants engaged in modest fashion e-shopping in Pakistan to test the direct effect of AI personalization on purchase intention and the moderating effect of Sharia compliance.Findings – The findings show that AI-driven personalization enhances purchase intention through tailored recommendations that align better with consumer preferences. Moreover, Sharia compliance significantly moderates this relationship; consumers show greater trust and engagement with AI recommendations when they align with Islamic principles of modesty and ethical consumption.Implications – This study identifies gaps in branding strategies targeting modest Muslim women that can be addressed through Sharia-compliant AI algorithms. Embedding ethical considerations into AI systems is essential to enhance user acceptance for e-commerce platforms operating in religiously sensitive regions.Originality – This study contributes to the niche literature on AI in specific fashion markets by introducing Sharia compliance as a novel moderating variable. This study provides fresh insights into how modern technological tools intersect with religious values in online retail spaces.