The Artificial Intelligence and Social Media Marketing Performance: Evidence on Personalization and Predictive Analytics from Pakistan’s Consumer Products Industry

This study examines how artificial intelligence (AI) affects social media marketing in Pakistan’s consumer products industry, focusing on both its opportunities and its challenges. It uses a mixed-method design that combines 20 in-depth interviews with a structured questionnaire completed by 150 marketing professionals in firms that use AI. Multiple regression analyses show that AI-enabled personalized content and predictive analytics are significant positive predictors of ROI, customer engagement, and conversion rates, and together explain 43% to 50% of the variance in these outcomes. Personalized content is most strongly associated with ROI, while predictive analytics is most strongly associated with conversion rates. The interviews point to three main opportunities: enhanced personalization, greater efficiency and cost savings, and better data-driven decisions. They also point to three main challenges: high implementation costs, data privacy and security concerns, and a shortage of AI skills. The findings highlight the importance of strong data protection, transparency, and staff training for maintaining consumer trust and complying with regulations. The study offers practical recommendations for using AI responsibly in social media marketing. Because the data are cross-sectional, self-reported, and drawn from one industry in one country, the results show associations rather than cause and effect.