Exploring the Impact of AI on Consumer Behavior and Digital Marketing Through the Lens of Social Media

The incorporation of Artificial Intelligence (AI) is rapidly advancing and significantly shaping consumer purchasing behavior and marketing approaches. This research examines AI's role in increasing the understanding of consumer preferences and digital marketing performance within Pakistan. Despite the potential of technologies such as analytics, machine learning, and recommender systems to enhance personalization, process automation, and user engagement, their application in moderating social media platforms remains underexplored. This study examines the effect and role of Artificial Intelligence (AI) on consumer-buyer behavior and digital marketing, with a key moderating variable being social media. The study, based on the Technology Acceptance Model (TAM), aims to investigate the impact of AI-based technologies on consumer decision-making, which promotes personalization and effectiveness in marketing. Data was collected from 658 Foodpanda users in Pakistan to complete a structured online survey with some standard Likert-scale measurement items. The findings indicate that significant and positive relationships exist among AI, consumer purchasing behavior, digital marketing, and social media engagement. The consumer's purchasing behavior to purchase a product mediates the connection between AI and digital marketing, and social media amplifies the effects of consumer behavior on marketing performance. This study is beneficial to both theory and practice since it validates the theory of TAM in an AI-driven marketing setting and provides practical steps targeted towards those marketers who want to maximize campaigns via AI and social media. There are also limitations and areas of future research discussed.