Artificial Intelligence as a Driver of Personalization in Digital Marketing: Risks and Prospects

Abstract

In today's digital transformation of the economy, artificial intelligence (AI) is rapidly changing traditional approaches to marketing communication, contributing to deeper personalization of interaction with consumers. Algorithmic analysis of large volumes of data allows for the formation of individualized offers taking into account the behavioral, emotional, and sociodemographic characteristics of users. At the same time, such practice generates a number of risks associated with possible violations of ethical norms, privacy rights, and the growth of information inequality. This necessitates a comprehensive study of the balance between the innovative effectiveness of AI and the need to regulate its impact on the consumer. The purpose of the study is to comprehensively analyze the functional capabilities of artificial intelligence in the personalization of digital marketing, determine the potential benefits of its use for business and the end consumer, and identify key ethical, legal, social, and technical risks associated with its implementation. The study used structural-functional and systemic approaches, methods of content analysis of scientific sources and regulatory acts, comparative analysis of international initiatives in the field of ethical regulation of AI, as well as elements of critical discourse in order to identify potential areas of manipulative influence of digital technologies. As a result of the study, it was found that AI has a powerful potential to transform digital marketing through personalization of consumer experience, increasing the accuracy of forecasting customer needs and automation of communications. At the same time, threats associated with the creation of “filter bubbles”, opacity of algorithms, invasion of privacy and discriminatory effects were identified. Special attention was paid to the analysis of international regulatory initiatives (EU Artificial Intelligence Act, GDPR, UNESCO recommendations, OECD AI Principles), which are designed to ensure the ethical implementation of AI in commercial practices, with a special emphasis on the protection of vulnerable groups. The results showed the need to create balanced mechanisms for overseeing AI solutions aimed at building trust in digital marketing strategies.