THE PRIVACY-PERSONALIZATION PARADOX: CONSUMER PERCEPTIONS OF AI-DRIVEN MARKETING

Abstract

Advancements in artificial intelligence have enabled marketers to deliver highly personalised content, recommendations, and experiences at unprecedented scale. By 2023, AI-driven marketing had become central to customer engagement strategies across digital platforms. However, the same data-driven capabilities that enable personalisation also intensify consumer privacy concerns, creating a paradox in which consumers value relevance while fearing data misuse. This paper examines consumer perceptions of AI-driven marketing in 2023, focusing on the tension between perceived benefits of personalisation and concerns regarding privacy, surveillance, and data security. Drawing on secondary research from academic literature, consumer surveys, and industry reports, the study analyses factors influencing trust, acceptance, and resistance toward AI-based personalisation. The paper argues that transparency, perceived control, and ethical data practices play critical roles in resolving the privacy-personalization paradox and sustaining consumer trust.