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A Study of the Impact of AI-Powered Recommendation Systems on Consumer Purchase Decisions in the E-Commerce Industry

  1. Vrushang Mulekar Chetana’s R.K Institute of Management & Research, Bandra East, Mumbai
  2. Mangesh Govalkar Chetana’s R.K Institute of Management & Research, Bandra East, Mumbai
  3. Aftab Shaikh Chetana’s R.K Institute of Management & Research, Bandra East, Mumbai
  4. Neena Katkar Chetana’s Institute of Management and Research, Bandra East, Mumbai

Abstract

Through personalized suggestions, the e-commerce industry has been affected so much that it has been overtaken by AI-powered recommendation systems. This paper examines the effects of AI-powered recommendations on online shoppers and how they influence product discovery, the engagement level of shoppers, and unplanned purchases. Emerging from the results of a survey of 55 graduates and MBA students, more than 70% of respondents claim that AI has helped them find new products, and over 60% confess to making unplanned purchases because of AI recommendations. On top of that, 56.5% of them enjoy the shopping experience improved by AI, and 75% prefer brands and platforms integrating AI-driven personalization. But as recently as 30% were neutral to their reliability, according to 30% of respondents. The results reveal that both AI-driven recommendation systems greatly influence online shopping behaviors, especially through personalization, transparency, and privacy measures, all of which must be improved to the utmost.

Keywords

References (12)

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