AI-Driven Personalised Marketing in E-Commerce: Strategies, Applications, Benefits, Challenges and Future Prospects

Artificial Intelligence (AI) has become one of the most influential technologies transforming modern marketing practices. With the rapid growth of e-commerce, businesses are increasingly using AI-powered tools to understand consumer preferences, predict purchasing behaviour and deliver personalised shopping experiences. AI-driven personalised marketing refers to the use of intelligent technologies, including machine learning, predictive analytics, natural language processing and recommendation systems, to provide customers with products, advertisements, offers and services according to their individual interests and needs. The purpose of this research paper is to examine the role of artificial intelligence in personalised marketing within the e-commerce industry. It explores the major AI technologies used by online businesses, the strategies adopted by companies, and their impact on customer satisfaction, engagement, purchasing decisions and brand loyalty. The paper also discusses the benefits of AI-driven personalisation for businesses, including improved marketing efficiency, better customer retention and increased opportunities for sales growth. Furthermore, the research highlights important challenges associated with AI-based marketing, particularly data privacy, cybersecurity, algorithmic bias, lack of transparency and excessive personalisation. Examples of companies such as Amazon and Netflix are discussed to understand how AI-based recommendation systems influence digital consumer experiences. The study is based on secondary research using academic publications, industry reports, government documents and existing research studies. It concludes that AI-driven personalised marketing has significant potential to improve the effectiveness of e-commerce businesses. However, its long-term success depends on responsible data management, transparency, ethical AI practices and maintaining consumer trust.