AI-Driven Consumer Behavior Insights and Human-Centered Marketing Strategies for Enhancing Engagement and Innovation

Abstract

Artificial intelligence (AI) in marketing has in the past few years been spreading very rapidly across the world. The world AI in marketing market grew by about US 17.48 billion in 2022, to US 22.64 billion in 2023, implying that AI in marketing market has a compound annual growth rate (CAGR) of about 29.5%. This academic article explains why the insights of the AI-driven consumer behavior collected through the support of big data analytics, machine learning, recommendation algorithms, and sentiment analysis could be used along with the human-centered-based marketing strategy to improve the customer engagement, innovation, and brand loyalty in the long-term. Empirical research indicates that AI-based personalization and data-based targeting could significantly drive up the conversion rates, utilize the marketing funds more efficiently, and enable more personalized and relevant user experiences. According to the recent surveys, companies, which exploit AI to learn more about their clients, report that the processes of product innovation are 45% more rapid, and the production of the campaign returns is increased 33%, as compared to companies, which apply traditional tools of analytics. These outcomes contribute to the idea that AI is not another personalization tool but a cause of business growth and creative thinking. Finally, the study finds some recommendations to be feasible that should be implemented by marketers: invest in good data governance, concentrate on customer privacy and transparency, merge feedback loops, and automate but not neglect human empathy. Those findings indicate that the exploitation of AI as the source of additional knowledge of consumers, and not its destruction, is a viable opportunity available to every business wishing to achieve success in the competitive online markets.