AI-Powered Personalization in Nigerian E-commerce Businesses: Enhancing Customer Engagement and Conversion

Although the growth of e-commerce in Nigeria has given companies new ways to connect with tech-savvy customers, there are still obstacles in providing individualized and reliable buying experiences. Although artificial intelligence (AI) technologies are being used more and more in international markets for customer targeting and product recommendations, little is known about how effective they are in Nigeria. By investigating how AI-powered personalization affects consumer engagement, purchase intention, and opinions about online retail, this study fills this knowledge gap. 400 Nigerian internet shoppers participated in a quantitative survey, and the results were examined using regression, correlation, and descriptive statistics. The results show that when recommendations are viewed as timely and relevant, AI-driven customization dramatically increases engagement and purchase intention. The association between purchase behavior and personalization was also mediated by engagement, indicating that active customer involvement is essential to conversion. These effects were, however, mitigated by privacy concerns, showing that excessive customization might erode confidence and impair purchase outcomes. The study concludes that, although it necessitates a careful balancing act between innovation and ethical data standards, AI personalization has the potential to revolutionize Nigerian e-commerce. Transparent data regulations, increased consumer control over personalization, and algorithmic systems that prioritize privacy and relevance are among the recommendations.