Reinventing Influence of Artificial Intelligence (AI) on Digital Consumer Lensing Transforming Consumer Recommendation Model: Exploring Stimulus Artificial Intelligence on Consumer Shopping Decisions

Reinventing Influence of Artificial Intelligence (AI) on Digital Consumer Lensing Transforming Consumer Recommendation Model: Exploring Stimulus Artificial Intelligence on Consumer Shopping Decisions

Bhupinder Singh, Christian Kaunert, Komal Vig
Copyright: © 2024 |Pages: 29
DOI: 10.4018/979-8-3693-1918-5.ch006
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Abstract

The rapid evolution of artificial intelligence (AI) has ushered in a transformative era in the digital consumer landscape. In the digital era, the symbiotic relationship between technology and consumer behavior has undergone a seismic shift, with artificial intelligence (AI) emerging as a transformative force in shaping the digital consumer experience. At this paradigm shift lies the intricate interplay between AI and consumer recommendation models, which have evolved from rudimentary algorithms to sophisticated systems capable of personalization and tailored engagement. This chapter delves into the intricate interplay between AI and digital consumers, focusing specifically on the profound influence of AI in reshaping consumer recommendation models and, consequently, molding consumer shopping decisions. The study is driven by the overarching objective of comprehensively understanding the impact of AI on the decision-making processes of contemporary consumers in the digital realm.
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1. Introduction

In the digital era, the symbiotic relationship between technology and consumer behavior has undergone a seismic shift, with Artificial Intelligence (AI) emerging as a transformative force in shaping the digital consumer experience. At this paradigm shift lies the intricate interplay between AI and consumer recommendation models, which have evolved from rudimentary algorithms to sophisticated systems capable of personalization and tailored engagement. This research endeavors to delve into the multifaceted dimensions of AI's influence on the digital consumer, with a specific focus on its role in redefining consumer recommendation models (Hasan et al, 2021). The concept of “stimulus AI,” characterized by its advanced algorithms and personalized learning capabilities, becomes the focal point of this investigation. As consumers increasingly navigate a vast digital marketplace, characterized by an abundance of choices and information, understanding how AI stimuli influence their shopping decisions becomes paramount for businesses and researchers alike (Wong et al., 2022). By exploring the nuanced dynamics of this interaction, the research aims to uncover the mechanisms through which stimulus AI not only informs but fundamentally transforms the consumer decision-making process, thereby revolutionizing traditional paradigms of commerce (Huynh-The et al., 2023).

AI-powered revolution that is permeating every facet of contemporary life from virtual assistants anticipating user needs to recommendation algorithms tailoring content and products to individual preferences, AI has become an omnipresent force in the digital ecosystem. Traditional consumer recommendation models, which relied on generalized preferences and historic data, are undergoing a metamorphosis as stimulus AI introduces a level of personalization and responsiveness that was once deemed unattainable. As the consumer landscape becomes increasingly dynamic and intricate, understanding the implications of this transformation on businesses and consumers is imperative for navigating the evolving terrain of digital commerce (Nashold Jr, 2020).

1.1 Objectives of the Paper

The objectives of this paper are two-fold: firstly, to investigate the nuanced influence of AI on consumer shopping decisions, and secondly, to dissect the role of stimulus AI in transforming existing consumer recommendation models. The study acknowledges that as consumers become more discerning and technologically savvy, the one-size-fits-all approach of yesteryears is no longer tenable. In its place, personalized, adaptive, and context-aware recommendation models, underpinned by stimulus AI, are emerging as the vanguard of a new era in consumer engagement.

This paper aims to contribute to the growing body of knowledge surrounding AI's impact on the digital consumer, offering insights that are not only theoretically rich but also practically relevant for businesses seeking to thrive in an era defined by unprecedented technological convergence. The exploration of stimulus AI's influence on consumer shopping decisions promises to illuminate not just the present state of the digital consumer landscape but also chart a course for businesses to navigate the future of consumer engagement in an AI-driven world.

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