Iranian Institute of Industrial Engineering Journal of Industrial and Systems Engineering 1735-8272 18 1 2026 01 01 Artificial Intelligence-Driven Personalization and Its Effects on Consumer Behavior 42 56 245163 EN Parvaneh Zeraati Foukolaei Department of management,Jo.C, Islamic Azad University, Jouybar, iran 0000-0003-2518-2982 Journal Article 2025 01 04 Artificial intelligence (AI) has emerged as a transformative technology that enables organizations to deliver highly personalized marketing experiences and improve customer interactions in digital environments. This study investigates the effects of AI-driven personalization on consumer behavior, focusing on customer engagement, purchase intention, customer satisfaction, and brand loyalty. A quantitative research approach was employed using survey data collected from consumers who regularly interact with AI-enabled digital marketing platforms. The proposed conceptual framework was tested using Structural Equation Modeling (SEM) to examine the relationships among the study variables. The findings reveal that AI-driven personalization has significant positive effects on customer engagement, purchase intention, and customer satisfaction. Furthermore, customer engagement, purchase intention, and customer satisfaction were found to positively influence brand loyalty, with customer satisfaction demonstrating the strongest impact. The results suggest that personalized experiences generated through artificial intelligence technologies enhance consumer perceptions, improve purchasing decisions, and strengthen long-term relationships between consumers and brands. The study contributes to the growing literature on artificial intelligence and marketing by providing empirical evidence regarding the behavioral outcomes of AI-based personalization. In addition, the findings offer practical implications for organizations seeking to leverage AI technologies to improve customer experiences and achieve sustainable competitive advantages in increasingly competitive digital marketplaces. https://www.jise.ir/article_245163_f1651783c4bd44c9fc75b2e7adf81511.pdf