Reimagining Consumer Engagement: A Systematic Literature Review on AI-Driven Marketing Innovation – Bridging Technological Synergies, Behavioral Insights, and Ethical Governance

G. Thouseef Ahamed¹ , T. Md. Inthiyaz Ahammed²

Section:Review Paper, Product Type: Journal-Paper
Vol.13 , Issue.1 , pp.35-43, Mar-2025

Online published on Mar 31, 2025

Copyright © G. Thouseef Ahamed, T. Md. Inthiyaz Ahammed . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
Personalized strategies, predictive analytics, and data-driven insights delivered through AI has changed the face of marketing for the better, with improved consumer engagement. However, these advancements come with new ethical issues relating to data privacy, algorithmic trust, and transparency. This literature review concerns itself with studying the dual impact of AI-driven innovations in marketing that strengthen brand-consumer relationships, but at the same time, create ethical challenges in context of healthcare (trust-centric) and retail (privacy-centric). The analysis reveals AI`s ability to provide hyper-personalized engagement, operational agility, and real-time accessible insights. However, opaque AI data practices and bias can erode trust. This shift urges the society to look at these tools in a more thoughtful way. The study adds to the discourse by underscoring the necessity of ethical governance frameworks that enhance transparency, accountability, and consumer agency in AI`s deployment. This study provides a novel comprehensive framework for theory and practice that integrates the technological-behavioral-ethical gap with responsive innovation-based strategies. We need experts from diverse areas to work together to tackle the current gap to ensure that AI can be utilized to enhance trust and loyalty without invading consumer privacy.

Key-Words / Index Term :
AI-Driven Marketing, Consumer Engagement, Ethical Governance, Data Privacy, Algorithmic Transparency, Behavioral Insights, Systematic Literature Review, Marketing Innovation, Personalized Marketing, Responsible AI

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