Application of artificial intelligence in predicting consumer behavior and personalized marketing

Abstract

Artificial Intelligence (AI) is increasingly developing and bringing many economic benefits. In the Fourth Industrial Revolution, with the current development of e-commerce and the implementation of AI in various aspects, consumers have more utilities to serve their search and use needs. The parallel development of these two fields complement each other and their common purpose is to improve consumer experience and satisfaction, optimizing profits for businesses. In this research article, by searching for information from previous research articles in the same field, collecting and analyzing 320 data samples of citizens who have experienced e-commerce platforms in Ho Chi Minh City, we used the PLS-SEM model in SmartPLS 4.0 to calculate the results. The results showed that with the assistance of personalized marketing, AI can predict customer purchase behaviors if they can create trust towards consumers. However, in contrast to our expectation, this study also indicates the new trend among the selected subjects is that consumers have the tendency to switch among brands on the e-commerce platforms.