Abstract

This study explores the role of Artificial Intelligence (AI)-powered personalisation tools in facilitating consumers’ purchase decision-making process within the online shopping environment. Recently, there has been a rapid growth in online shopping, and retailers have adopted AI-powered personalisation tools such as recommendation systems, chatbots and dynamic pricing to assist and support their consumers with the purchase decision. The techniques and tools required to achieve personalisation have been studied, however, their influence and supportive role during the consumer decision-making journey remains unexplored. The research addresses this gap by assessing how AI-powered personalisation tools facilitate the purchase decision from the problem recognition phase to the post-purchase phase. The findings from the research suggest that AI-powered personalisation can provide valuable support throughout four of the five phases of the consumers’ decision-making process through tools AI-powered personalised recommendations, AI-driven contextual recommendations and comparison tools, AI-driven comparison analysis tools, AI-driven personalised reminders and in-cart recommendations. However, tools like AI-driven chatbots and Dynamic pricing are deemed as less relevant by consumers. Post-purchase, AI support is not particularly effective for consumers, who find AI-driven chatbots and review requests to be unhelpful in handling complex queries. The findings emphasise the importance of AI-powered personalisation but also raise a need for improvements to align with customer expectations.

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