The Impact of AI-Driven Personalization on Consumer Buying Behaviour in Nigeria

The high rate of development of digital business in Nigeria has enhanced artificial intelligence-based personalization in online shopping platforms. Such technologies as recommendation systems, chatbots and targeted advertising have become common to affect consumer interaction and shopping behaviour. Regardless of this increased use, little empirical data has been gathered regarding the impact of AI motivated personalization on the consumer purchasing behavior in the digital market in Nigeria. This paper will analyze how AI mediated personalization processes relate to purchase intention among the Nigerian online shoppers. The research design is mixed in that a systematic literature review is coupled with an online survey of 400 online shoppers selected in Lagos, Abuja, Kano, and Port Harcourt. The methods used to analyse the data were the descriptive statistics, reliability test, correlation, and multiple regression methods. The empirical results show that perceived relevance of recommendations, quality of chatbots interaction, and targeted social media advertising, perceived trust in practices of platform data have a strong positive effect on the purchase intention of consumers. Regression model: The regression model indicates a large variation in the purchase intention that is explained by the regression model of 58.4%. Additional discussion reveals that the personalization mechanisms have a stronger effect on consumer purchasing behaviour when there is trust in online platforms and consumer digital literacy. This implies the existence of a dynamic of personalization trust whereby AI based personalization is more effective when consumers already have confidence in their platform data practices. The research is valuable to the body of literature concerning the application of artificial intelligence in marketing in developing economies and it has implications to e commerce companies and regulators who may strive to balance the effectiveness of personalisation with consumer confidence and privacy in Nigeria.