Exploring the Impact of AI-Powered Personalisation on Customer Loyalty at a Large Nigerian E-Commerce Organisation

The rapid evolution of e-commerce, driven by technological advancements, has fundamentally transformed how consumers interact with online platforms. Central to this transformation is the integration of Artificial Intelligence (AI) in personalising user experiences. This study investigates the challenges faced by a large e-commerce organisation in Nigeria in implementing AI-powered personalisation strategies on its website and examines the impact of these strategies on customer loyalty. An empirical and quantitative research methodology was adopted, underpinned by the Commitment-Trust Theory, with data collected via structured questionnaires distributed to 80 employees, of which 53 responded. The findings reveal that AI-based personalisation systems are more effective than traditional e-commerce recommender systems, as they provide highly accurate and relevant recommendations by leveraging complex algorithms and real-time data analysis, significantly enhancing customer experience and satisfaction. The study identifies key challenges to implementing AI-driven personalisation, including data privacy concerns (77% of respondents), algorithmic biases (70%), and technical infrastructure limitations (66%). Regression analysis confirms a statistically significant positive relationship between AI-based personalisation and customer loyalty (P-value = 0.000869). Recommendations include enhancing data privacy measures, mitigating algorithmic biases, and investing in robust technical infrastructure. The study concludes that effectively leveraging AI-driven personalisation is crucial for maintaining a competitive edge and achieving long-term success in the dynamic e-commerce landscape.