THE FUNCTION OF ARTIFICIAL INTELLIGENCE IN CONSUMER INTERACTIONS AND ADVERTISING: A SYSTEMATIC REVIEW

Adoption of artificial intelligence (AI) in advertising and consumer engagement has transformed how companies engage consumers and offer personalized experiences. This systematic review documents the state of the art of AI usage in advertising, capturing the influence on consumer engagement, personalization strategies and the effectiveness of ads. The current article delves into the trajectory of AI advertising technology, their implementation challenges and their transformative impacts on consumer consumption and consumption habits. The review synthesizes evidence from various studies to give an overview of the trajectory of AI in advertising and its implications for consumers and marketers. Key results show that AI-powered advertisement greatly improves targeting effectiveness, increases customer engagement rates and provides real-time campaign optimization. Privacy issues, ethical questions and consumer acceptance of AI-generated advertisements remain key areas that need to be solved.