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The AI Effect: How Artificial Intelligence Shapes Consumer Buying Intentions in the Retail Sector

BY PRATUSH GOYAL

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY, CHHATTISGARH

JUNE 2025

Abstract

Artificial Intelligence (AI) is rapidly transforming the retail landscape, from personalized marketing to advanced analytics. This study examines how AI-driven technologies influence consumer buying intentions in retail settings. Drawing on survey data and current literature, we employ descriptive statistics and correlation analysis to assess the relationship between AI usage and purchase behavior. The findings indicate a strong positive association: AI-enabled personalization and service enhancements substantially boost purchase intentions and satisfaction. Notably, demographic factors (gender and income) moderate these effects. The discussion highlights practical implications for retailers (e.g. transparency, trust-building, and data ethics) and confirms that while AI can significantly enhance customer engagement, consumers’ data privacy concerns and trust issues must be addressed.