EXPLORING THE PARADOX OF PRIVACY AND PERSONALIZATION IN ARTIFICIAL INTELLIGENCE ENABLED SOCIAL MEDIA ADVERTISING

Abstract

The emergence of Artificial Intelligence (AI) has transformed the landscape of social media advertising, enabling businesses to target their audience with greater precision and accuracy. This study aims to investigate the different features of AI employed in social media advertising and their effect on the efficacy of advertising campaigns. As AI becomes more prevalent in the advertising segment, the study aim to recognize the implications of these features in creating customized advertising messages, enhancing user engagement, and increasing purchase intention. By understanding the impact of these AI features on social media advertising, organizations can make well-informed decisions on optimizing their advertising campaigns and achieve tremendous success in reaching their intended audience. Data from an online survey administered to 315 social media users in Qatar regarding customized social media advertising are used to assess the research model using structural equation modelling. Existing research has focused on social media advertising and the usage of AI. It has yet to consider its effect on purchase intention, which is essential to business success. This research tries to fill the gap by covering the paradox of privacy and personalization in artificial intelligence enabled social media advertising to build a suitable model for evaluating the flow experience of AI-enabled advertisements and their ability to influence the customer's intention and actions. Therefore, as the first study addressing the pertinent aspects of AI-driven social media advertising in Qatar, this research has successfully amalgamated three conceptual models into a unified framework. By doing so, it has shed light on the potential predictions of the online shopping experience while extending the privacy personalization paradox to social media advertisements. The findings of this study unequivocally validate that privacy concerns exert a significant adverse influence on the flow experience, consequently impacting consumer purchase intentions. Furthermore, this thesis discusses research implications and proposes various strategies for practitioners and marketers to enhance users' engagement in social media activities. Additionally, the study's limitations are addressed, acknowledging potential constraints that may impact the generalizability and scope of the findings.