“AI-Driven Consumer Engagement in the Post-Digital Era: An Analytical Study of Personalization, Trust, and Market Performance”

Abstract

The post-digital era has redefined consumer behavior, where hyper-connectivity, real-time interactions, and heightened expectations of personalization dominate market dynamics. This study investigates the role of Artificial Intelligence (AI) in shaping consumer engagement through personalization strategies, the building of trust, and the subsequent influence on market performance. Drawing upon both primary data from consumer surveys and secondary data from industry reports, the research employs a mixed-method approach, integrating regression analysis, structural equation modeling (SEM), and text mining of consumer sentiment. The findings indicate that AI-driven personalization significantly enhances consumer satisfaction and loyalty, while trust emerges as a crucial mediator between AI-enabled engagement and long-term consumer relationships. Moreover, firms implementing AI in engagement strategies demonstrate improved customer retention, higher customer lifetime value (CLV), and superior market performance compared to traditional models. The study underscores the need for ethical AI adoption, transparency in algorithmic decision-making, and consumer-centric frameworks to balance technological efficiency with trust-building imperatives. These insights provide both theoretical contributions to engagement-performance models and practical guidance for businesses aiming to sustain competitive advantage in the post-digital marketplace.