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Abstract

The research evaluates how artificial intelligence impacts personalized marketing through its three major effects on customer encounter and predictive market segmentation alongside brand audience interaction. Managers use AI to monitor consumer information while automating communication and adding tailored suggestions for consumers which leads to higher marketing results. This research employed a quantitative strategy which obtained data from secondary records involving AI marketing strategy case studies in addition to academic literature and industry reports. The evaluation of how AI helps personalization, engages customers better and optimizes targeting effectiveness occurred through statistical analysis. The analytic power of AI in marketing allows organizations to improve personalization because it examines consumer activities which results in specialized advertisement delivery. The use of AI-powered chatbots with virtual assistants delivers better customer support efficiency thereby producing happier clients who remain active with the system. The major obstacles in AI application involve privacy issues with customer data together with biased algorithms running against human interaction standards. The implementation of AI technologies in marketing operations brought about two key benefits consisting of automated choices along with maximized consumer connections. The presence of ethical problems involving data security as well as transparency remains unresolved. Organizations who apply AI-driven strategies successfully will achieve competitive superiority in their fields. Upcoming studies need to focus on how generative AI produces content as well as ethical standards for AI systems and its organizational usages throughout different sectors. Sustainable AI-designed marketing initiatives require organizations to maintain equal proportions between machine automation and human employee involvement.