GENERATIVE AI IN MARKETING AND CONSUMER BEHAVIOR: A COMPREHENSIVE REVIEW OF PERSONALIZATION, CONSUMER TRUST, BRAND ENGAGEMENT, AND ETHICAL CHALLENGES
Keywords:
Generative artificial intelligence, Marketing personalization, Consumer trust, Brand engagement, Consumer behaviour, AI ethics
Abstract
Generative AI (GenAI) is quickly redefining marketing, taking artificial intelligence beyond predictive and analytical applications to the realms of creating content, engaging in conversations, personalization, and automated creative assistance. The aim of this review is to pull together the latest literature on the implications of GenAI for marketing and consumer behaviour, focusing on personalisation, consumer trust, engagement with brands and ethical issues. The findings indicate that GenAI can enhance the customer relevance, convenience, service responsiveness, purchase support, and ongoing engagement between consumers and brands throughout the customer journey. While hyper-personalization and AI recommendations help to enhance satisfaction and engagement, it does depend on consumer perceptions of usefulness, transparency, authenticity, privacy, and control. Trust comes to the fore as a key mechanism that affects acceptance of AI-mediated communication and willingness to use AI-enabled services. The review also points out significant ethical issues regarding data protection, algorithmic bias, misinformation generated by synthetic content, deepfakes, intellectual property, dark patterns and manipulative targeting. Thus, there is a need for people to monitor the responsible implementation, transparency of disclosure, robust data governance, bias and accuracy checks and consumer autonomy measures. Future research needs to explore the longitudinal and cross-cultural impacts, AI literacy, human–AI co-creation, multimodal and agentic systems, and integrated connections between personalization, trust, engagement and behaviours. To sum up, sustainable GenAI marketing demands innovation and responsible, consumer-focused practices, emphasizing fairness, authenticity, accountability, and consumer value and trust.
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References
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29. Jan, I. U., Ji, S., & Kim, C. (2023). What (de) motivates customers to use AI-powered conversational agents for shopping? The extended behavioral reasoning perspective. Journal of Retailing and Consumer Services, 75, 103440.
30. Joshi, S., Bhattacharya, S., Pathak, P., Natraj, N. A., Saini, J., & Goswami, S. (2025). Harnessing the potential of generative AI in digital marketing using the Behavioral Reasoning Theory approach. International Journal of Information Management Data Insights, 5(1), 100317.
31. Jung, T., Koghut, M., Lee, E., & Kwon, O. (2025). Artificial creativity in luxury advertising: How trust and perceived humanness drive consumer response to AI-generated content. Journal of Retailing and Consumer Services, 87, 104403.
32. Kirkby, A., Baumgarth, C., & Henseler, J. (2025). Welcome, new brand colleague! A conceptual framework for efficient and effective human–AI co-creation for creative brand voice. Journal of Brand Management, 32(5), 385-399.
33. Kirshner, S. N. (2024). GPT and CLT: The impact of ChatGPT’s level of abstraction on consumer recommendations. Journal of Retailing and Consumer Services, 76, 103580.
34. Koh, W. C., & Seah, Y. Z. (2023). Unintended consumption: The effects of four e-commerce dark patterns. Cleaner and Responsible Consumption, 11, 100145.
35. Kollmer, T., & Eckhardt, A. (2023). Dark patterns. Business & Information Systems Engineering, 65(2), 201-208.
36. Koning, B., & Voorveld, H. A. (2025). Disclaimer! This content is AI-generated: How AI-disclosures influence trust in advertisements and organizations. Journal of Interactive Advertising, 25(3), 240-253.
37. Kopalle, P. K., Gangwar, M., Kaplan, A., Ramachandran, D., Reinartz, W., & Rindfleisch, A. (2022). Examining artificial intelligence (AI) technologies in marketing via a global lens: Current trends and future research opportunities. International Journal of Research in Marketing, 39(2), 522-540.
38. Lee, K. W., & Li, C. Y. (2023). It is not merely a chat: Transforming chatbot affordances into dual identification and loyalty. Journal of Retailing and Consumer Services, 74, 103447.
39. Lefkeli, D., Karataş, M., & Gürhan-Canli, Z. (2024). Sharing information with AI (versus a human) impairs brand trust: The role of audience size inferences and sense of exploitation. International Journal of Research in Marketing, 41(1), 138-155.
40. Leszczynska, M., & Baltag, D. (2024). “Can I have it non-personalised?” An empirical investigation of consumer willingness to share data for personalized services and ads. Journal of Consumer Policy, 47(3), 345-372.
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42. Liu-Thompkins, Y., Okazaki, S., & Li, H. (2022). Artificial empathy in marketing interactions: Bridging the human-AI gap in affective and social customer experience. Journal of the Academy of Marketing Science, 50(6), 1198-1218.
43. Mogaji, E., & Jain, V. (2024). How generative AI is (will) change consumer behaviour: Postulating the potential impact and implications for research, practice, and policy. Journal of consumer behaviour, 23(5), 2379-2389.
44. Prasanna, A., & Kushwaha, B. P. (2025). Generative AI in marketing: Foundations, trends, and future research propositions. Human Behavior and Emerging Technologies, 2025(1), 5542513.
45. Runge, J., Wentzel, D., Huh, J. Y., & Chaney, A. (2023). “Dark patterns” in online services: a motivating study and agenda for future research. Marketing Letters, 34(1), 155-160.
46. Saura, J. R., Škare, V., & Dosen, D. O. (2024). Is AI-based digital marketing ethical? Assessing a new data privacy paradox. Journal of Innovation & Knowledge, 9(4), 100597.
47. Shen, Z. (2024). Shall brands create their own virtual influencers? A comprehensive study of 33 virtual influencers on Instagram. Humanities and Social Sciences Communications, 11(1), 177.
48. Shilpa, K., & Menon, D. (2024). Consumer’s interaction with ChatGPT-a UTAUT perspective. Science Talks, 9.
49. Sin, R., Harris, T., Nilsson, S., & Beck, T. (2025). Dark patterns in online shopping: do they work and can nudges help mitigate impulse buying? Behavioural Public Policy, 9(1), 61-87.
50. Ullah, I., Boreli, R., & Kanhere, S. S. (2023). Privacy in targeted advertising on mobile devices: a survey. International Journal of Information Security, 22(3), 647-678.
51. van Doorn, J., Mende, M., Noble, S. M., Hulland, J., Ostrom, A. L., Grewal, D., & Petersen, J. A. (2017). Domo arigato Mr. Roboto: Emergence of automated social presence in organizational frontlines and customers’ service experiences. Journal of service research, 20(1), 43-58.
52. Verma, S., Sharma, R., Deb, S., & Maitra, D. (2021). Artificial intelligence in marketing: Systematic review and future research direction. International Journal of Information Management Data Insights, 1(1), 100002.
53. Wang, Y., Sauka, K., & Situmeang, F. B. I. (2025). Anthropomorphism and transparency interplay on consumer behaviour in generative AI-driven marketing communication. Journal of Consumer Marketing, 42(4), 512-536.
54. Yin, M., Ma, B., & Pan, X. (2024). Consumer attitudes towards genai advertisements: A multi-experiment comparative study based on engagement. Journal of Cases on Information Technology (JCIT), 26(1), 1-35.
55. Yu, J., Dickinger, A., So, K. K. F., & Egger, R. (2024). Artificial intelligence-generated virtual influencer: Examining the effects of emotional display on user engagement. Journal of Retailing and Consumer Services, 76, 103560.
2. Afroogh, S., Akbari, A., Malone, E., Kargar, M., & Alambeigi, H. (2024). Trust in AI: progress, challenges, and future directions. Humanities and Social Sciences Communications, 11(1), 1568.
3. Aiolfi, S., Bellini, S., & Pellegrini, D. (2021). Data-driven digital advertising: benefits and risks of online behavioral advertising. International journal of retail & distribution management, 49(7), 1089-1110.
4. Arce-Urriza, M., Chocarro, R., Cortinas, M., & Marcos-Matas, G. (2025). From familiarity to acceptance: The impact of Generative Artificial Intelligence on consumer adoption of retail chatbots. Journal of Retailing and Consumer Services, 84, 104234.
5. Bilal, M., Zhang, Y., Cai, S., Akram, U., & Halibas, A. (2024). Artificial intelligence is the magic wand making customer-centric a reality! An investigation into the relationship between consumer purchase intention and consumer engagement through affective attachment. Journal of Retailing and Consumer Services, 77, 103674.
6. Boerman, S. C., Kruikemeier, S., & Bol, N. (2021). When is personalized advertising crossing personal boundaries? How type of information, data sharing, and personalized pricing influence consumer perceptions of personalized advertising. Computers in Human Behavior Reports, 4, 100144.
7. Brüns, J. D., & Meißner, M. (2024). Do you create your content yourself? Using generative artificial intelligence for social media content creation diminishes perceived brand authenticity. Journal of Retailing and Consumer Services, 79, 103790.
8. Canhoto, A. I., Keegan, B. J., & Ryzhikh, M. (2024). Snakes and ladders: Unpacking the personalisation-privacy paradox in the context of AI-enabled personalisation in the physical retail environment. Information Systems Frontiers, 26(3), 1005-1024.
9. Chen, Y., Prentice, C., Weaven, S., & Hisao, A. (2022). The influence of customer trust and artificial intelligence on customer engagement and loyalty–The case of the home-sharing industry. Frontiers in psychology, 13, 912339.
10. Cheng, X., Bao, Y., Zarifis, A., Gong, W., & Mou, J. (2022). Exploring consumers’ response to text-based chatbots in e-commerce: the moderating role of task complexity and chatbot disclosure. Internet Research, 32(2), 496-517.
11. Cillo, P., & Rubera, G. (2025). Generative AI in innovation and marketing processes: A roadmap of research opportunities. Journal of the Academy of Marketing Science, 53(3), 684-701.
12. Davenport, T., Guha, A., Grewal, D., & Bressgott, T. (2020). How artificial intelligence will change the future of marketing. Journal of the academy of marketing science, 48(1), 24-42.
13. De Cosmo, L. M., Piper, L., & Di Vittorio, A. (2021). The role of attitude toward chatbots and privacy concern on the relationship between attitude toward mobile advertising and behavioral intent to use chatbots. Italian Journal of Marketing, 2021(1), 83-102.
14. De Mauro, A., Sestino, A., & Bacconi, A. (2022). Machine learning and artificial intelligence use in marketing: a general taxonomy. Italian Journal of Marketing, 2022(4), 439-457.
15. Duivenvoorde, B. (2025). Generative AI and the future of marketing: A consumer protection perspective. Computer Law & Security Review, 57, 106141.
16. El Bakkouri, B., Raki, S., & Belgnaoui, T. (2022). The role of chatbots in enhancing customer experience: literature review. Procedia Computer Science, 203, 432-437.
17. Fox, G., Lynn, T., & Rosati, P. (2022). Enhancing consumer perceptions of privacy and trust: a GDPR label perspective. Information Technology & People, 35(8), 181-204.
18. Frank, D. A., Jacobsen, L. F., Søndergaard, H. A., & Otterbring, T. (2023). In companies we trust: consumer adoption of artificial intelligence services and the role of trust in companies and AI autonomy. Information Technology & People, 36(8), 155-173.
19. Gao, B., Wang, Y., Xie, H., Hu, Y., & Hu, Y. (2023). Artificial intelligence in advertising: advancements, challenges, and ethical considerations in targeting, personalization, content creation, and ad optimization. Sage Open, 13(4), 21582440231210759.
20. Grewal, D., Satornino, C. B., Davenport, T., & Guha, A. (2025). How generative AI is shaping the future of marketing. Journal of the Academy of Marketing Science, 53(3), 702-722.
21. Haleem, A., Javaid, M., Qadri, M. A., Singh, R. P., & Suman, R. (2022). Artificial intelligence (AI) applications for marketing: A literature-based study. International Journal of intelligent networks, 3, 119-132.
22. Hallikainen, H., Luongo, M., Dhir, A., & Laukkanen, T. (2022). Consequences of personalized product recommendations and price promotions in online grocery shopping. Journal of Retailing and Consumer Services, 69, 103088.
23. Hardcastle, K., Vorster, L., & Brown, D. M. (2025). Understanding customer responses to AI-driven personalized journeys: Impacts on the customer experience. Journal of Advertising, 54(2), 176-195.
24. Hari, H., Sharma, A., Verma, S., & Chaturvedi, R. (2025). Exploring ethical frontiers of artificial intelligence in marketing. Journal of Responsible Technology, 21, 100103.
25. Hermann, E. (2022). Leveraging artificial intelligence in marketing for social good—An ethical perspective. Journal of business ethics, 179(1), 43-61.
26. Hildebrand, C., & Bergner, A. (2021). Conversational robo advisors as surrogates of trust: onboarding experience, firm perception, and consumer financial decision making. Journal of the Academy of Marketing Science, 49(4), 659-676.
27. Huang, M. H., & Rust, R. T. (2021). A strategic framework for artificial intelligence in marketing. Journal of the academy of marketing science, 49(1), 30-50.
28. Illescas-Manzano, M. D., Vicente López, N., Afonso González, N., & Cristofol Rodríguez, C. (2021). Implementation of chatbot in online commerce, and open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 125.
29. Jan, I. U., Ji, S., & Kim, C. (2023). What (de) motivates customers to use AI-powered conversational agents for shopping? The extended behavioral reasoning perspective. Journal of Retailing and Consumer Services, 75, 103440.
30. Joshi, S., Bhattacharya, S., Pathak, P., Natraj, N. A., Saini, J., & Goswami, S. (2025). Harnessing the potential of generative AI in digital marketing using the Behavioral Reasoning Theory approach. International Journal of Information Management Data Insights, 5(1), 100317.
31. Jung, T., Koghut, M., Lee, E., & Kwon, O. (2025). Artificial creativity in luxury advertising: How trust and perceived humanness drive consumer response to AI-generated content. Journal of Retailing and Consumer Services, 87, 104403.
32. Kirkby, A., Baumgarth, C., & Henseler, J. (2025). Welcome, new brand colleague! A conceptual framework for efficient and effective human–AI co-creation for creative brand voice. Journal of Brand Management, 32(5), 385-399.
33. Kirshner, S. N. (2024). GPT and CLT: The impact of ChatGPT’s level of abstraction on consumer recommendations. Journal of Retailing and Consumer Services, 76, 103580.
34. Koh, W. C., & Seah, Y. Z. (2023). Unintended consumption: The effects of four e-commerce dark patterns. Cleaner and Responsible Consumption, 11, 100145.
35. Kollmer, T., & Eckhardt, A. (2023). Dark patterns. Business & Information Systems Engineering, 65(2), 201-208.
36. Koning, B., & Voorveld, H. A. (2025). Disclaimer! This content is AI-generated: How AI-disclosures influence trust in advertisements and organizations. Journal of Interactive Advertising, 25(3), 240-253.
37. Kopalle, P. K., Gangwar, M., Kaplan, A., Ramachandran, D., Reinartz, W., & Rindfleisch, A. (2022). Examining artificial intelligence (AI) technologies in marketing via a global lens: Current trends and future research opportunities. International Journal of Research in Marketing, 39(2), 522-540.
38. Lee, K. W., & Li, C. Y. (2023). It is not merely a chat: Transforming chatbot affordances into dual identification and loyalty. Journal of Retailing and Consumer Services, 74, 103447.
39. Lefkeli, D., Karataş, M., & Gürhan-Canli, Z. (2024). Sharing information with AI (versus a human) impairs brand trust: The role of audience size inferences and sense of exploitation. International Journal of Research in Marketing, 41(1), 138-155.
40. Leszczynska, M., & Baltag, D. (2024). “Can I have it non-personalised?” An empirical investigation of consumer willingness to share data for personalized services and ads. Journal of Consumer Policy, 47(3), 345-372.
41. Li, J., Wu, L., Qi, J., Zhang, Y., Wu, Z., & Hu, S. (2023). Determinants affecting consumer trust in communication with AI chatbots: the moderating effect of privacy concerns. Journal of Organizational and End User Computing (JOEUC), 35(1), 1-24.
42. Liu-Thompkins, Y., Okazaki, S., & Li, H. (2022). Artificial empathy in marketing interactions: Bridging the human-AI gap in affective and social customer experience. Journal of the Academy of Marketing Science, 50(6), 1198-1218.
43. Mogaji, E., & Jain, V. (2024). How generative AI is (will) change consumer behaviour: Postulating the potential impact and implications for research, practice, and policy. Journal of consumer behaviour, 23(5), 2379-2389.
44. Prasanna, A., & Kushwaha, B. P. (2025). Generative AI in marketing: Foundations, trends, and future research propositions. Human Behavior and Emerging Technologies, 2025(1), 5542513.
45. Runge, J., Wentzel, D., Huh, J. Y., & Chaney, A. (2023). “Dark patterns” in online services: a motivating study and agenda for future research. Marketing Letters, 34(1), 155-160.
46. Saura, J. R., Škare, V., & Dosen, D. O. (2024). Is AI-based digital marketing ethical? Assessing a new data privacy paradox. Journal of Innovation & Knowledge, 9(4), 100597.
47. Shen, Z. (2024). Shall brands create their own virtual influencers? A comprehensive study of 33 virtual influencers on Instagram. Humanities and Social Sciences Communications, 11(1), 177.
48. Shilpa, K., & Menon, D. (2024). Consumer’s interaction with ChatGPT-a UTAUT perspective. Science Talks, 9.
49. Sin, R., Harris, T., Nilsson, S., & Beck, T. (2025). Dark patterns in online shopping: do they work and can nudges help mitigate impulse buying? Behavioural Public Policy, 9(1), 61-87.
50. Ullah, I., Boreli, R., & Kanhere, S. S. (2023). Privacy in targeted advertising on mobile devices: a survey. International Journal of Information Security, 22(3), 647-678.
51. van Doorn, J., Mende, M., Noble, S. M., Hulland, J., Ostrom, A. L., Grewal, D., & Petersen, J. A. (2017). Domo arigato Mr. Roboto: Emergence of automated social presence in organizational frontlines and customers’ service experiences. Journal of service research, 20(1), 43-58.
52. Verma, S., Sharma, R., Deb, S., & Maitra, D. (2021). Artificial intelligence in marketing: Systematic review and future research direction. International Journal of Information Management Data Insights, 1(1), 100002.
53. Wang, Y., Sauka, K., & Situmeang, F. B. I. (2025). Anthropomorphism and transparency interplay on consumer behaviour in generative AI-driven marketing communication. Journal of Consumer Marketing, 42(4), 512-536.
54. Yin, M., Ma, B., & Pan, X. (2024). Consumer attitudes towards genai advertisements: A multi-experiment comparative study based on engagement. Journal of Cases on Information Technology (JCIT), 26(1), 1-35.
55. Yu, J., Dickinger, A., So, K. K. F., & Egger, R. (2024). Artificial intelligence-generated virtual influencer: Examining the effects of emotional display on user engagement. Journal of Retailing and Consumer Services, 76, 103560.
Published
2025-11-26
How to Cite
Dr. Priyanka Sharma. (2025). GENERATIVE AI IN MARKETING AND CONSUMER BEHAVIOR: A COMPREHENSIVE REVIEW OF PERSONALIZATION, CONSUMER TRUST, BRAND ENGAGEMENT, AND ETHICAL CHALLENGES. IJRDO - Journal of Business Management, 11(4), 67-77. https://doi.org/10.69980/bm.v11i5.6799
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Articles
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