Understanding Consumer Engagement in AI-Powered Social Media: A Structural Analysis of Personalization, Trust, and Privacy

Abstract

Artificial Intelligence (AI) has transformed social media marketing through advanced personalization techniques, enabling brands to deliver customized content, targeted advertisements, and product recommendations. This study investigates the influence of AI-driven personalization on consumer behavior on social media platforms, focusing on the mediating role of customer trust and the moderating role of privacy concern. A quantitative research approach was adopted using a structured questionnaire administered to 250 active social media users. Data were analyzed using SPSS through descriptive statistics, correlation, regression, mediation, and moderation analyses. The findings reveal that AI-driven personalization has a significant positive effect on customer engagement and purchase intention. Customer trust was found to partially mediate the relationship between AI personalization and purchase intention, indicating that personalized experiences translate into buying behavior primarily through trust in AI systems. Privacy concern showed a significant negative impact on consumers’ acceptance of AI-enabled personalization and weakened the positive effects of personalization on trust and behavioral outcomes. Perceived transparency of AI systems enhanced customer trust and reduced privacy concerns, highlighting the importance of ethical and transparent data practices. The study contributes to existing literature by integrating personalization, trust, and privacy into a unified framework for understanding consumer behavior in AI-driven social media environments. From a managerial perspective, the results emphasize that organizations must balance technological innovation with responsible data management and trust-building strategies. By prioritizing transparency and consumer privacy, businesses can maximize the benefits of AI personalization, strengthen customer relationships, and achieve sustainable engagement and growth in digital markets.