The use of AI in predicting consumer behaviour and marketing strategies

In today’s competitive and fast-moving digital environment, businesses are looking for smarter ways to understand and connect with their customers. This paper focuses on how Artificial Intelligence (AI) is transforming marketing by helping predict consumer preferences and making marketing efforts more targeted and effective. The study explores how machine learning, natural language processing (NLP), and predictive analytics can analyze huge amounts of customer data to spot patterns, predict behavior, and personalize marketing campaigns. To test this, various AI models like Support Vector Machines (SVM), Random Forests, Recurrent Neural Networks (RNN), and Convolutional Neural Networks (CNN) were developed and evaluated. Results showed that these models could accurately predict consumer choices, which in turn improved marketing performance—boosting engagement, conversions, and return on investment (ROI). The paper also addresses important concerns around data privacy and ethical AI use, acknowledging that while AI brings many benefits, businesses must also handle consumer data responsibly. Overall, this study highlights the growing role of AI in creating smarter, more personalized marketing strategies that not only meet consumer needs but also help companies stay competitive in an evolving digital market.