THE IMPACT OF AI GENERATED CONTENT TO INCRESE CUSTOMER ENGAGEMENT ON SOCIAL MEDIA

The use of social media now plays a crucial role for companies in interacting with customers. However, less than 50% of businesses have successfully utilized it effectively. The main issue is that the content is uninteresting and irrelevant, leading to a decreaced in customer engagement. Therefore, this research aims to determine whether AI-Generated Content can enhance customer engagement on social media. This research was conducted by distributing questionnaires to residents of DKI Jakarta, Indonesia, who have purchased products marketed through social media (TikTok and Instagram), where the content generated was AI Generated Content. In this study, a total of 494 respondents were collected. This research conduct using the customer engagement in social media framework (CESM) combined with several other variables that support studies on customer engagement. This study demonstrates that AI-Generated Content (AIGC) significantly enhances customer engagement on social media. Increased social interaction and hedonic motivation effectively address challenges on social media by generating content quickly while maintaining visually appealing quality. Additionally, the improvement in satisfaction, influenced by increased commitment and trust, can trigger active customer interactions, ultimately boosting customer engagement. Meanwhile, positive emotion has a relatively lower impact, as customer responses to AIGC's ability to provide relaxation and humor are often not very strong. Based on the research findings, it is hoped that business owners can address various issues that arise during the marketing process by understanding the potential and limitations in the creation of AI-generated content.