Redefining Consumer Behaviour in the AI Era

The rapid growth of Artificial Intelligence (AI) has deeply changed consumer behaviour by influencing how people search for, assess, and buy products and services. This chapter examines how AI technologies such as machine learning, predictive analytics, chatbots, and voice assistants have transformed traditional decision-making into a process that is data-driven, automated, and highly personalized. By tracing the evolution of consumer behaviour from the pre-digital period to the intelligent era, the study shows how AI supports hyper-personalization, anticipatory marketing, and real-time engagement, while also creating new challenges related to privacy, bias, and ethical transparency. Using a qualitative and descriptive approach, this chapter reviews existing research to explore the technological, psychological, and ethical impacts of AI on modern consumers. The findings show that AI makes shopping more convenient and efficient but also influences people’s emotions, trust, and sense of control. It concludes that understanding AI’s growing influence on consumer behaviour is vital for researchers, marketers, and policymakers. By ensuring transparency, fairness, and ethical use of AI, businesses can build stronger trust, loyalty, and sustainable consumer relationships in the AI-driven future.