Systems 12 00429 v2
Systems 12 00429 v2
Review
The Impact of Artificial Intelligence Marketing on
E-Commerce Sales
Mitra Madanchian
Department of Arts, Communications and Social Sciences, University Canada West, Vancouver, BC V6Z 0E5,
Canada; mitra.madanchian@gmail.com or mitra@hamta.ca
Abstract: This review explores the influence of AI marketing on e-commerce sales, examining how
AI-driven strategies affect key metrics such as customer acquisition and conversion rates. Given
the growing importance of AI in online retail, this paper employs a critical review methodology,
analyzing 50 documents from the Scopus database. The analysis reveals that AI tools like chatbots,
personalization engines, and predictive analytics significantly enhance e-commerce performance.
The study provides practical and theoretical contributions, offering recommendations for businesses
and suggesting future research directions.
1. Introduction
E-commerce, or electronic commerce, refers to any activity or service involving the
purchase and sale of goods and services via the internet [1–3]. Due to customers’ grow-
ing need for online services and its potential to provide businesses a competitive edge,
businesses are engaging in e-commerce more and more [4–7]. Online sales are now easier
thanks to the platform economy’s success [8].
Even in the e-commerce age, sales companies’ organizational structures continue to
undergo significant modifications [9]. Many aspects of existence, including the economic
state, were influenced by the development of information and communication technology.
Citation: Madanchian, M. The Impact E-commerce is the process of purchasing or selling products and services through the
of Artificial Intelligence Marketing on internet using electronic media [10]. The transition from traditional, external sales forces
E-Commerce Sales. Systems 2024, 12, to the concurrent use of inside sales personnel results in hybrid sales structures that can
429. https://doi.org/10.3390/ handle online seller–buyer interactions and further leverage technological advancements
systems12100429 in business intelligence and sales automation to enhance sales performance [9].
These platforms have implemented a product review system that allows customers
Academic Editor: Gandolfo
Dominici
to easily access information regarding the sales and reviews of vendors, as well as to
submit their own reviews for completed transactions. Customers’ online evaluations,
Received: 25 August 2024 which serve as an indicator of product quality and sellers’ credibility, have a substantial
Revised: 13 September 2024 impact on sales [11]. Customers have the option to purchase products online without
Accepted: 9 October 2024 engaging in specific sensory experiences, such as tasting, inhaling, or touching. As a
Published: 12 October 2024
result, product evaluations are of paramount importance in the implementation of online
marketing strategies [12]. However, because of its connection with quickly developing,
widely used, and incredibly inexpensive information technology (IT), businesses find
Copyright: © 2024 by the author.
it difficult to implement this e-business strategy. As a result, businesses are forced to
Licensee MDPI, Basel, Switzerland. continuously modify their business plans to accommodate shifting client demands [13].
This article is an open access article E-commerce has a number of disadvantages and difficulties, such as the requirement
distributed under the terms and for effective and customized client experiences, which traditional approaches find difficult
conditions of the Creative Commons to deliver in the quickly changing market environment. To address these challenges,
Attribution (CC BY) license (https:// businesses are increasingly turning to artificial intelligence (AI) to optimize their marketing
creativecommons.org/licenses/by/ efforts and enhance customer experience. The department within a corporation that is
4.0/). most likely to benefit from artificial intelligence (AI) is marketing. The three primary
responsibilities of marketing are to comprehend client needs, align them with services and
products, and persuade individuals to make a purchase. AI has the potential to significantly
enhance each of these tasks [14]. AI has the potential to help organizations make better
decisions since it can analyze massive amounts of data quickly and reduce the chance
of human mistakes [15]. Machines learn, represent, store, and refine their knowledge
progressively based on past experiences and existing information to make reasoning and
real-time decisions [16].
Lexicon-based solutions and AI/ML-based methods can classify sentiment analysis
methods. AI-powered sentiment analysis is essential for businesses and helps understand
clients’ thoughts and employee feelings and thoughts. It will help computers understand
emotions in messages, comments, and feedback [17].
To optimize marketing strategies, AI is essential for automating a number of mar-
keting operations, including content creation, customer relationship management, and
predictive analytics [18]. According to research, businesses like Amazon and Netflix use
AI to transform customer experiences and obtain an edge over competitors in fast-moving
markets [19]. However, the use of AI also brings up moral questions, such as algorithmic
prejudices and privacy concerns. Thus, a balanced strategy that puts responsibility and
openness first is required [19].
Although AI’s applications have been the subject of much research in a variety of
industries, there has not been a systematic consolidation of findings specifically related
to marketing, especially when it comes to consumer impressions and ethical considera-
tions [20]. Research on niche markets, such as e-commerce for fashion, has revealed a
number of important unmet needs in the classification and use of AI methods, indicating
the need for further focused studies [21,22]. For example, in fashion e-commerce, unmet
needs include the integration of AI tools that can predict fashion trends and personalize
recommendations based on individual customer preferences. Consumers often struggle to
choose products because of an overwhelming number of options, highlighting the need for
better recommendation systems. Personalized fashion recommender systems can improve
the user experience by offering outfit suggestions based on individual tastes, but many
platforms do not yet provide these customized solutions. Traditional pricing strategies
are insufficient in today’s rapidly evolving digital environment, creating a demand for
AI-driven methods to enhance price forecasting and trend analysis. The integration of
varied data sources for price prediction is still not widely utilized, suggesting a significant
opportunity for innovation [23].
Although AI has the potential to revolutionize marketing, there has not been enough
academic attention paid to its drawbacks, including biases and privacy issues [24]. This
suggests that further study is urgently needed to tackle these moral issues and investigate
the complex effects of AI on consumer behavior and marketing tactics, enhancing the
scholarly conversation on this quickly developing subject. This review aims to address
these gaps by examining how AI-driven marketing strategies impact e-commerce sales
metrics and by exploring the ethical implications associated with AI use in marketing.
To the best of our knowledge, this review is one of the first in the context of AI
marketing in e-commerce, and it will provide an overview of the current state of the field
and the areas that need to be improved for future directions. This critical review investigates
the following research questions: (1) How do AI-driven marketing strategies impact e-
commerce sales metrics such as customer acquisition, conversion rates, and customer
lifetime value? (2) What are the ethical implications of using AI in marketing, particularly
in terms of privacy, bias, and transparency? (3) How can AI marketing tools be optimized
to enhance e-commerce performance?
2. Literature Review
2.1. AI Marketing Overview
The marketing landscape has been transformed by AI, which has accelerated growth,
reshaped business strategies, and enhanced processes, thereby promoting rapid digital
Systems 2024, 12, 429 3 of 20
beneficial for small and medium-sized enterprises (SMEs), which may lack the resources to
conduct extensive market research [33].
and dynamic pricing models, as beneficial and user-friendly is a significant factor in their
acceptance of these technologies in the context of AI marketing. For example, users are more
inclined to adopt AI-powered recommendation systems that are perceived as accurately
predicting consumer preferences, which results in increased engagement and sales [45].
According to TAM, a person’s intention to utilize technology is influenced by how
beneficial and simple they believe it to be [46,47]. TAM contributes to the understanding
of how consumer attitudes and behavioral intentions are shaped by their perceptions
of AI’s utility in improving the shopping experience and the ease with which they may
interact with AI-powered marketing tools in the context of AI adoption in marketing [47,48].
Numerous studies have used TAM to look into the adoption of AI in different marketing
contexts. For instance, one study examined using TAM how consumers’ perceptions of
AI’s utility and ease of use are influenced by relationship marketing elements like trust and
commitment, which in turn affect consumers’ desire to embrace the technology [48]. In
order to comprehend how environmental, technological, and social aspects influence the
adoption of AI in manufacturing and production organizations, another study linked TAM
with the Technology–Organization–Environment (TOE) framework [49]. These studies
demonstrate how adaptable TAM is in offering perceptions into the intricate process of AI
adoption in marketing, empowering marketers to create more persuasive consumer-focused
campaigns [50].
The Theory of Planned Behavior (TPB), which was introduced by Ajzen [51], augments
the TAM by integrating supplementary factors, including subjective norms and perceived
behavioral control, that influence an individual’s intention to engage in a behavior. In the
context of AI marketing, TPB can be employed to ascertain the impact of social influences
and perceived control over the use of AI-driven technologies on consumer decisions. For
instance, consumers who believe that their peers are favorably inclined toward AI-driven
personalized marketing may be more inclined to interact with these technologies. In the
same vein, consumers are much more inclined to employ AI tools, such as chatbots, for
customer service when they are assured of their ability to interact with them. This can
result in increased conversion rates and sales [51]. This theory emphasizes the significance
of the social and psychological factors that influence consumer adoption and utilization of
AI marketing tools, in addition to the technological attributes.
Positive attitudes regarding AI technology, which are influenced by their perceived util-
ity and usability, can greatly increase marketers’ intentions to include AI in their campaigns.
Empirical evidence suggests that marketers are more likely to use AI-driven solutions when
they believe AI may improve consumer engagement and operational efficiency. Subjective
norms, which are a reflection of peer pressure and industry standards, are also quite impor-
tant. For example, marketers may feel under pressure to adopt similar technology to stay
competitive if they witness competitors successfully implementing AI [48]. If marketers
believe they have the necessary resources, skills, and support to implement AI technologies,
their intention to adopt these innovations is likely to be stronger. Studies have shown
that understanding and addressing the perceived risks associated with AI—such as data
privacy concerns—can also enhance perceived behavioral control, thereby fostering a more
favorable attitude towards AI adoption. By integrating these TPB components, marketers
can better strategize their approach to AI technologies, ultimately leading to more effective
marketing outcomes and improved customer experiences [52].
The AIDA model, a classic marketing theory that was developed by Lewis in 1898,
delineates the phases that a consumer undergoes in the process of purchasing a product:
Attention, Interest, Desire, and Action [53]. Each stage of the AI marketing process can
be effectively analyzed through the lens of the AIDA model, as AI tools are built to
optimize each stage. For instance, personalized advertising that is powered by AI can more
effectively captivate the attention of consumers by focusing on their specific preferences and
behaviors. In the same way, AI-powered content creation and recommendation engines can
sustain consumer interest and cultivate a desire for the product by providing pertinent and
enticing information. The implementation of AI-based dynamic pricing and personalized
Systems 2024, 12, 429 6 of 20
offers can motivate consumers to act, thereby boosting sales [54]. The AIDA model offers a
structured approach to comprehending how AI marketing strategies can be customized to
more effectively guide consumers through the purchasing funnel.
Companies may create communications that grab people’s attention and pique their
curiosity about AI technologies by using the AIDA model. For example, promoting ac-
ceptance and reducing public fear regarding AI’s benefits can be achieved by transparent
communication [55]. Small cultural institutions use social media to improve community
participation by utilizing the AIDA model. These groups can increase participation in
their events by producing eye-catching content that sparks curiosity and attention [56].
China Construction Bank used the AIDA model to promote its online banking services to
college students. The bank concentrated on innovative, hands-on learning methods that
would pique students’ interest and motivate them to take action, which greatly increased
marketing effectiveness [57].
These theories establish a comprehensive theoretical framework for the examination
of the influence of AI marketing on e-commerce sales. By employing the AIDA model,
TAM, and TPB, researchers, and practitioners can develop a more profound comprehension
of the factors that motivate consumer adoption of AI technologies and the mechanisms by
which these technologies modify purchasing behavior. This framework not only assists in
the evaluation of the current impact of AI marketing but also in the prediction of future
trends and the optimization of AI strategies to improve the performance of e-commerce.
The use of AI in businesses can be guided by a number of pertinent ideas and models. The
hybridization of AI adoption into four macro phases is formalized by the 4S Model for AI
Adoption [58]:
1. Storming: Determining use cases, evaluating data, and preparing infrastructure
2. Solving: Constructing and evaluating AI models
3. Scoping: Standardizing data collection and extending AI to new domains
4. Scaling: utilizing AI to automate tasks, integrating AI into processes, and expanding
throughout the company
A conceptual framework for assessing AI readiness and encouraging adoption in small
and medium-sized businesses (SMEs) is put out by Bettoni et al. [59]. Technology, data,
people, organization, strategy, budget, goods and services, ethics and rules, and budget are
all important elements.
Investigating pertinent theories in the acceptance of AI exposes numerous models that
clarify consumer behavior and trust dynamics. Understanding how perceived benefits—
such as enjoyment and immersion—influence customer attitudes toward AI applications in
luxury hotel environments, thereby impacting their willingness to pay for and use these
technologies, depends mostly on the Value Adoption Model (VAM). Emphasizing the
roles of performance expectation and hedonic motivation as main enablers, the Behavioral
Reasoning Theory (BRT) also emphasizes the psychological and functional constructions
that shape consumer intentions toward AI-based voice assistants, highlighting obstacles,
including value and image concerns [60]. As shown by a mixed-methods study that
presents a whole model of trust in technological consumption [61], the integration of trust-
related elements, including perceived usefulness and transparency, is crucial in building
consumer confidence in AI systems.
3. Research Methodology
This study examines how AI marketing affects e-commerce sales using a critical review
methodology. A critical review methodology was chosen for its ability to synthesize existing
research comprehensively. The main goal is to compile and assess the body of knowledge on
the topic in order to derive a thorough understanding of the ways in which AI marketing
tactics affect the success of e-commerce. The review concentrates on publications that
particularly discuss AI marketing and how it is used in e-commerce settings.
The data for this review were sourced from the Scopus database, which is a compre-
hensive and widely used academic resource. A search was conducted using the keywords
“Artificial Intelligence Marketing” OR “AI Marketing” in the Title, Abstract, and Keywords
fields. This search yielded a total of 60 documents.
The initial dataset of 60 documents was refined through a series of filtering steps:
1. Language Filtering: Documents not published in English were excluded, reducing the
dataset to 58 documents.
2. Relevance Filtering: Each document’s title and abstract were reviewed to assess its
relevance to AI marketing. Eight documents were excluded based on the criterion that
they did not focus specifically on AI marketing strategies. The final sample for this
review consisted of 50 documents that explicitly address AI marketing in the context
of e-commerce.
The analysis involved a combination of quantitative measures, such as frequency anal-
ysis of keywords and publication trends, and qualitative synthesis to assess the applicability
of various AI marketing strategies.
Systems 2024, 12, 429 8 of 21
4. Data Analysis
4.
examination of
The examination of publishing
publishing patterns
patternsin inAI
AImarketing
marketingfrom from2015
2015toto2024
2024indicates
indicatesa
a notable
notable surge
surge in research
in research endeavors,
endeavors, especially
especially in theinlast
thefew
last few as
years, years, as illustrated
illustrated in Figurein2.
Figure
The data2. indicate
The dataaindicate
distinctarising
distinct rising
trend, trend,
with only with
oneonly one publication
publication in 2015. in 2015. Fol-a
Following
lowing
brief a brief
hiatus hiatus
in 2016 andin2017,
2016research
and 2017, research
interest interest
started started to
to gradually gradually
increase, increase, as
as evidenced by
evidenced
one by one
publication inpublication
2018 and two in 2018 andAdditionally,
in 2019. two in 2019. Additionally, 2020 saw no publica-
2020 saw no publications, perhaps
tions,
as perhaps
a result of theas aCOVID-19
result of the COVID-19worldwide
pandemic’s pandemic’sdisruptions.
worldwide disruptions.
However, there However,
was a
there was a considerable
considerable increase in 2022increase in 2022
and 2023, and122023,
with with
articles 12 articles
each, each,a indicating
indicating a boom
boom in interest in
in interest
the topic thatin began
the topic that with
in 2021 began5 publications.
in 2021 with 5With publications. With 17
17 publications, thepublications,
trend peaked thein
2024
trendand continued
peaked in 2024 toand
increase. This development
continued to increase. Thisshows that, as AIshows
development marketing
that, has become
as AI mar-
more
ketingimportant
has become in the
moreacademic
importantcommunity and integrated
in the academic community into and
commercial
integrated operations,
into com-it
has moved
mercial from being
operations, a specialized
it has moved from field of study
being to a well-established
a specialized field of study research domain.
to a well-estab-
lishedThe notable
research surge in 2022 and 2023 suggests a heightened academic and practical
domain.
interest in AI’s applications and ramifications, while the gradual growth in publications
since 2018 demonstrates a rising acknowledgment of the technology’s significance in
marketing. This surge is consistent with the broader trends of digital transformation
and the technological developments in artificial intelligence, indicating that more and
more researchers are looking into the ways in which AI may improve marketing tactics
and customer engagement. AI marketing is developing into a dynamic subject with a
wide range of research fields, including algorithmic advances, ethical considerations, and
real-world case studies.
Systems 2024, 12,
Systems 2024, 12, 429
429 99 of 21
of 20
Figure 2.
Figure 2. Trend
Trend of
of publications.
publications.
The notable
Figure surge inhow
3 illustrates 2022theand 2023 suggests
dataset’s a heightened
distribution of document academic typesand practical
reflects the
interest in AI’s applications and ramifications, while the gradual growth
variety of research products in the field of AI marketing. There is a clear preference for in publications
since 2018
original demonstrates
research a risinginvestigations,
and empirical acknowledgment of the technology’s
as evidenced by the factsignificance
that the bulkinofmar-
the
keting. This(26)
documents surgeareisresearch
consistent with This
articles. the broader
dominancetrends of digital
implies transformation
that researchers and the
are actively
technological
producing new developments
discoveries and in artificial intelligence,
ideas, indicating thatindicating
the topic is thatstillmore
in itsand more re-
exploratory
searchers
stages. arefifteen
With looking into the ways
publications, in whichpapers
conference AI may improvethe
represent marketing tactics category.
second-largest and cus-
tomer engagement. AI marketing is developing into a dynamic subject
These papers are a reflection of ongoing talks and presentations at conferences for academia with a wide range
of research
and business.fields,
Theseincluding algorithmic
publications probably advances,
reflect newethical considerations,
concepts and preliminary and real-world
research
case add
that studies.
to the fluidity of AI marketing studies. There are seven book chapters indicating
that the topic
Figure of AI marketing
3 illustrates how the is being covered
dataset’s in moreofwidely
distribution documentedited volumes
types that
reflects themay
va-
offer thorough
riety of researchsummaries
products inor thetheoretical
field of AI frameworks.
marketing. There Theisfact
a clearthatpreference
there is only one
for orig-
book among and
inal research the documents suggests that,asalthough
empirical investigations, evidenced being a new
by the fact area,
that the AI bulk
marketing
of the
has not yet produced many stand-alone volumes. One review paper
documents (26) are research articles. This dominance implies that researchers are actively indicates that the
Systems 2024, 12, 429 synthesis
producingofnew current knowledge
discoveries andisideas,
starting to take shape,
indicating that thealbeit it isisstill
topic stillnot
in as
itsadvanced
10 of
exploratory as
21
original research.
stages. With fifteen publications, conference papers represent the second-largest category.
These papers are a reflection of ongoing talks and presentations at conferences for aca-
demia and business. These publications probably reflect new concepts and preliminary
research that add to the fluidity of AI marketing studies. There are seven book chapters
indicating that the topic of AI marketing is being covered in more widely edited volumes
that may offer thorough summaries or theoretical frameworks. The fact that there is only
one book among the documents suggests that, although being a new area, AI marketing
has not yet produced many stand-alone volumes. One review paper indicates that the
synthesis of current knowledge is starting to take shape, albeit it is still not as advanced
as original research.
Figure3.3.Types
Figure Typesof
ofdocuments
documentsbased
basedon
onScopus
Scopuscategorization.
categorization.
Keyword analysis provides further insight into the primary themes and concepts ex-
plored within AI marketing (Figure 4). The most frequently occurring keywords reflect
the central topics of research, with “Artificial Intelligence” (29 occurrences) being the most
prevalent, underscoring its foundational role in the studies. “Marketing” (17 occurrences)
also appears frequently, highlighting the focus on AI’s application within marketing strat-
plored within AI marketing (Figure 4). The most frequently occurring keywords
the central topics of research, with “Artificial Intelligence” (29 occurrences) being th
prevalent, underscoring its foundational role in the studies. “Marketing” (17 occur
also appears frequently, highlighting the focus on AI’s application within marketin
Systems 2024, 12, 429 egies. “Commerce” (13 occurrences) indicates a strong interest in the10commercial of 20
a
tions of AI, particularly in e-commerce. These keywords are central to the study’
tives of understanding the intersection of AI and e-commerce sales. They undersc
focus onprovides
Keyword analysis how AI further
strategies are shaping
insight into the consumer interactions
primary themes and sales outco
and concepts
online retail.
explored within AI marketing (Figure 4). The most frequently occurring keywords reflect
“Machinewith
the central topics of research, Learning” (8 occurrences)
“Artificial Intelligence”and “Marketing Strategy”
(29 occurrences) being the (6 occurrences
most
prevalent, underscoring its foundational role in the studies. “Marketing” (17 occurrences)in AI mar
light the importance of technical approaches and strategic considerations
Keywords
also appears frequently, such as “Sales,”
highlighting “AI on
the focus Marketing,” “Deep within
AI’s application Learning,” “Digital
marketing Marketing,”
strate-
gies. “Commerce” bots,”
(13and “Consumer
occurrences) Behavior”
indicates reflectinterest
a strong a broadinrange of interests,applica-
the commercial from technical
to customer-centric
tions of AI, particularly in e-commerce.outcomes. The presence
These keywords of terms
are central to thelike “Trust,”
study’s “Decision-M
objectives
and “Strategic Planning” suggests an exploration of AI’s
of understanding the intersection of AI and e-commerce sales. They underscore the focusimpact on consumer tru
organizational strategy.
on how AI strategies are shaping consumer interactions and sales outcomes in online retail.
5. Findings
The development of AI marketing between 2015 and 2023 shows a notable advance-
ment in technology and its potential to enhance marketing tactics. Forrest and Hoanca
(2015) [78] investigated how AI, in particular Virtual Personal Shopping Assistants (VPSAs),
started to change marketing by optimizing product purchases and personalizing customer
interactions. While these early studies laid the groundwork for understanding AI’s poten-
tial in customizing marketing campaigns, their impact was limited by the nascent stage
of AI technology and the relatively simple applications available at that time. The critical
analysis here involves recognizing that the initial advancements were more about proof-
of-concept than widespread practical implementation. In 2018, Skirpan and Fiesler [80]
presented the idea of “Ad Empathy”, imagining affective computing and emotion detection
to create emotion-sensitive technologies that will influence tailored marketing in the future.
An important trend toward interactions that are more human-like was brought to light
by the concept of incorporating emotional intelligence into AI systems. This was more of
a theoretical framework than a practical tool, as the technology to fully realize affective
computing was still under development.
With the release of Arsenijevic and Jovic’s [75] chatbot study in 2019, the emphasis
on useful applications of AI in marketing became increasingly apparent. They looked at
how chatbots could improve customer service by giving prompt, tailored responses, but
they also took into account customer concerns about the dependability of AI. This worry
about the dependability and trustworthiness of AI tools emerged as a recurrent theme in
later studies. The impact of AI on marketing trends was further highlighted in a 2019 study
by Nivetha and Sudhamathi [81], who noted how developing technologies like AI and
machine learning gave organizations a competitive edge and changed digital marketing
strategies. While AI provided a competitive advantage, the rapid pace of technological
advancement also posed challenges for businesses to keep up with the latest tools and
techniques, potentially widening the gap between early adopters and laggards.
To facilitate AI’s integration into several marketing operations, Huang and Rust
(2021) [71] presented a strategic framework for AI in marketing. They did this by classifying
AI into three categories: thinking, feeling, and mechanical. This framework offered a
thorough method for applying AI to marketing research, strategy, and implementation
Systems 2024, 12, 429 12 of 20
phases. Similar to this, Yin and Qiu (2021) [74] used a structural equation model to examine
how AI affected consumers’ intent to make online purchases, emphasizing how AI’s
precision, understanding, and interaction experience affected attitudes and actions.
According to Yau et al.’s [16] presentation of the AIM framework in 2021, which
described how AI might improve consumer connections through big data and knowledge
production, the development of AI marketing frameworks had advanced by that point. The
Camelot system for AI-powered campaign management was launched by Kulkarni et al.
(2021) [82], demonstrating AI’s ability to automate and optimize social media marketing
initiatives, particularly for SMEs. Kovanova et al. (2021) [83] and Liu-Thompkins et al.
(2022) [72] investigated how AI can support strategic decision-making and improve cus-
tomer interactions through artificial empathy, which resulted in significant advancements
in understanding AI’s role in marketing management during this period. However, the em-
phasis on artificial empathy also raises questions about the authenticity of such interactions
and their long-term effects on consumer relationships.
Numerous research studies have investigated the application of AI to marketing in
2022. In their analysis of the variables impacting users’ first trust in chatbots, Mostafa and
Kasamani [73] focused on the significance of compatibility and usability in building trust.
According to Chen et al.’s (2022) [76] analysis of consumer perceptions of AI marketing
communication, the technology has a minimal but usually positive influence on consumer
behavior. Future research orientations in AI marketing will be guided by the important
issues and research gaps found by Anayat and Rasool’s [84] bibliometric study.
Understanding of AI’s impact on marketing performance and customer interactions
has continued to be refined by recent studies, such as Wu and Monfort’s (2023) [85] investi-
gation into AI’s role in marketing strategies and Gao and Liu’s (2023) [77] exploration of
AI-enabled personalization. The literature from 2015 to 2023 offers a thorough understand-
ing of AI technology’s revolutionary impact on marketing strategies and paves the way for
further advancements in the sector as it continues to develop.
AI marketing strategies can be categorized into four main themes: AI-driven personal-
ization, predictive analytics, automated content generation, and customer engagement.
6. Discussion
Key performance indicators (KPIs) in many different industries have undergone a
significant transformation as a result of the application of AI in marketing. Personalized
communication, consumer targeting, and overall marketing performance have all improved
thanks to AI-driven marketing methods. Metrics including sales growth, customer lifetime
value (CLV), customer acquisition cost (CAC), and return on marketing investment (ROMI)
are crucial to this transition. The development of these measures has been greatly aided by
AI technologies such as machine learning (ML), deep learning (DL), and natural language
processing (NLP).
AI marketing strategies significantly impact sales growth by enabling hyper-personalized
customer interactions. E-commerce businesses leveraging AI can analyze extensive datasets
to deliver tailored content and advertisements. This level of personalization enhances user
engagement and, subsequently, conversion rates. For example, research by Li et al. [88]
and Lv and Huang [97] shows that AI-driven recommendation engines can significantly
increase sales success by customizing product recommendations to each customer’s tastes.
Businesses have witnessed significant gains in revenue and conversion rates by utilizing
AI to forecast customer behavior and enhance marketing strategies.
Customer acquisition cost (CAC) is another vital statistic influenced by AI marketing.
Because of their wide targeting and wasteful ad spending, traditional marketing strategies
can have large expenses. On the other hand, AI optimizes ad budgets by automating
customer interactions and focusing on high-potential leads. This efficiency considerably
lowers CAC. Research shows how AI solutions, such as chatbots and automated CRM sys-
Systems 2024, 12, 429 14 of 20
tems, improve lead qualifying and conversion procedures to expedite customer interactions
and lower acquisition costs [24,98].
AI increases customer lifetime value (CLV) by cultivating enduring customer rela-
tionships. Businesses may anticipate customer requirements and personalize experiences
by leveraging AI’s capacity to evaluate client data over time. CLV rises as a result of
this tailored approach’s increased client satisfaction and loyalty. The study conducted by
Shukla and Dwivedi [93] highlights the potential of AI to personalize marketing campaigns
according to client sentiment, thereby increasing customer retention and lifetime value.
AI maximizes return on marketing investment (ROMI) by making marketing efforts
more successful and efficient. AI solutions give organizations comprehensive insights into
the effectiveness of their campaigns, enabling them to deploy resources more wisely and
calculate ROI more precisely. Research by Chandra et al. [86] and Durai et al. [87] shows
how AI-driven analytics assist companies in tracking and optimizing their marketing spend,
which improves return on investment (ROMI). For e-commerce businesses, this translates
to a more efficient marketing strategy and maximized returns.
been more likely to embrace artificial intelligence technologies. Dealing with these issues
could involve natural experiments or difference-in-differences techniques to separate the
effect of artificial intelligence acceptance from other influencing elements.
Nevertheless, if other pertinent variables influencing marketing success—such as
managerial knowledge or consumer loyalty—are not sufficiently controlled, then omitted
variable bias may still exist. By improving the accounting for these unobserved factors,
using fixed-effects models or matching approaches could assist in allaying these worries.
The ethical ramifications of AI marketing provide a significant obstacle, particularly in
relation to consumer trust and data protection. The Gonçalves et al. [89] study tackles the
moral questions raised by AI and how it affects consumer perceptions. The study shows
how consumers’ adoption of AI can be influenced by perceived risks and ethical concerns,
and it suggests that in order for businesses to continue earning customers’ trust, they need
to address these concerns.
The possibility of prejudice and discrimination in AI systems is another drawback. Ac-
cording to studies by Nguyen et al. [92] and Shen et al. [103], prejudices may unintentionally
be reinforced by AI algorithms, which could result in unfair marketing practices. This prob-
lem emphasizes the necessity of strong moral standards and legal protections to guarantee
that AI marketing techniques do not target particular customer segments unfairly.
Putting AI marketing techniques into practice can be expensive and difficult. The study
conducted by Pugna and colleagues [95] sheds light on the difficulties marketing managers
encounter while implementing AI technology, such as the requirement for specialized
knowledge and resources. To effectively use AI, businesses must invest in technology and
training, which can be a major obstacle for smaller businesses.
The accuracy and quality of the data used might have an impact on how effective
AI marketing methods are. The study by Moutinho et al. [104] highlights how crucial
high-quality data are to successful AI marketing. Incomplete or inaccurate data can result
in less effective AI-driven initiatives and less-than-ideal marketing judgments. Figure 5
visually represents the main insights and contributions identified in the study. It organizes
these insights into several key areas, including the significant impact of AI on enhancing
customer engagement, improving personalization, and optimizing marketing strategies,
Systems 2024, 12, 429 and highlights the challenges and limitations associated with AI marketing, such as 16 data
of 21
privacy concerns and the need for ethical considerations.
The scalability of
The scalability of AI
AI marketing
marketing solutions
solutions varies
varies across
across e-commerce
e-commerce sectors.
sectors. Sectors
Sectors
like
like fashion
fashion and
and electronics
electronics benefit
benefit more
more from
from AI
AI due
due to
to their
their reliance
reliance on
on personalization,
personalization,
dynamic
dynamic pricing,
pricing, and
and large
large data
data volumes,
volumes, while
while sectors
sectors like
like groceries
groceries face
face challenges
challenges due
due
to lower differentiation and margins. These variations highlight the need for sector-spe-
to lower differentiation and margins. These variations highlight the need for sector-specific
cificstrategies,
AI AI strategies, considering
considering factorsfactors like buying
like buying behavior,
behavior, purchase purchase frequency,
frequency, and
and product
product complexity. For example, in the luxury sector, AI must enhance personalization
without undermining exclusivity, while in fast-moving consumer goods, AI can optimize
supply chains and inventory management to reduce costs and improve customer satisfac-
tion.
Conventional marketing methods, like in-person events, direct mail, or television
Systems 2024, 12, 429 16 of 20
complexity. For example, in the luxury sector, AI must enhance personalization without
undermining exclusivity, while in fast-moving consumer goods, AI can optimize supply
chains and inventory management to reduce costs and improve customer satisfaction.
Conventional marketing methods, like in-person events, direct mail, or television
ads, often offer a personal touch that helps build stronger emotional bonds and trust with
customers. For example, products or services that demand a high level of trust or target
less tech-savvy consumers might gain more from these traditional approaches. Moreover,
these methods can be more effective in areas with limited digital infrastructure or markets
where digital adoption is still low.
When managing brand crises or reputation issues, human intuition and experience can
provide a more reliable and nuanced approach to handling sensitive customer interactions
and maintaining brand integrity. Regulatory and compliance concerns can pose challenges
for AI-driven marketing in certain regions. As data privacy regulations, such as the
GDPR in Europe, become stricter, businesses may find it safer and less complicated to use
traditional marketing strategies that do not involve extensive data processing.
7. Conclusions
The study of AI marketing’s impact on e-commerce reveals a transformative effect
on sales metrics and marketing strategies. AI has significantly enhanced key performance
indicators such as sales growth, customer acquisition cost (CAC), customer lifetime value
(CLV), and return on marketing investment (ROMI). By leveraging machine learning,
deep learning, and natural language processing, AI has enabled businesses to deliver
highly personalized and targeted marketing campaigns, resulting in increased engagement,
improved conversion rates, and overall sales growth. Key findings from the study include:
✓ AI-driven recommendation engines and personalized marketing efforts have led to
notable improvements in sales performance, as evidenced by increased conversion
rates and higher sales figures.
✓ AI optimizes ad spend and automates customer interactions, resulting in reduced CAC.
AI tools such as chatbots and automated CRM systems have streamlined customer
acquisition processes, leading to cost savings.
✓ AI’s ability to analyze customer data and anticipate needs has improved customer
satisfaction and loyalty, boosting CLV.
✓ AI analytics provide detailed insights into campaign performance, enabling more
effective resource allocation and improved ROMI.
The comparative analysis of sales data before and after AI marketing implementation
underscores the positive impact of AI on marketing performance, highlighting significant
improvements in conversion rates, brand preference, and repurchase intentions. Despite
the benefits, challenges such as ethical concerns, algorithmic bias, implementation costs,
and data quality issues persist.
While the study provides valuable insights into AI marketing’s impact, several limi-
tations should be acknowledged. The study’s findings are based on a subset of available
data, which may not fully represent all e-commerce sectors or global markets. The impact
of AI marketing might vary across different industries and regions. The analysis primarily
focuses on recent data. As AI technology evolves rapidly, future developments may alter
the current understanding of AI marketing’s impact. The findings may not be universally
applicable to all e-commerce businesses, particularly smaller enterprises with different
resource constraints and operational challenges. While the study addresses ethical concerns,
further research is needed to explore the full extent of algorithmic bias and its implications
for diverse consumer groups.
Businesses are advised to start with AI tools that offer quick wins, such as chatbots
for customer service and predictive analytics for inventory management. Additionally,
the scalability of AI marketing tools should be assessed based on sector-specific needs
and resources. Future research should cover several critical areas to build on the current
work and address its limitations. Longitudinal research will help determine AI marketing’s
Systems 2024, 12, 429 17 of 20
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