Leveraging Artificial Intelligence for Hyper-Personalized Marketing: Opportunities and Challenges in the Digital Era

Abstract

This study investigates the opportunities and challenges of artificial intelligence (AI)-driven hyper-personalized marketing, with a focus on how businesses and professionals perceive its effectiveness, barriers, and future outlook. The research aims to provide insights into the role of AI in enhancing customer segmentation, personalized recommendations, and overall marketing strategies. A quantitative research approach was adopted, utilizing a structured questionnaire distributed through Google Forms. A total of 300 respondents were selected using a convenience sampling technique. Data was analysed and presented using tables, bar charts, pie charts, and donut charts to illustrate key patterns and frequencies. Reliability of the instrument was confirmed through Cronbach’s Alpha, ensuring internal consistency. The results reveal strong support for AI’s role in improving customer segmentation and delivering personalized recommendations, with predictive analytics, chatbots, and behavioural targeting identified as the most impactful strategies. However, data privacy concerns were recognized as the most significant barrier, followed by high implementation costs, ethical issues, and a shortage of skilled professionals. Mixed views emerged on AI’s impact on customer trust, although 80% of respondents supported increased investment, highlighting optimism for AI’s role in transforming customer experience in the coming years. This study contributes to the growing body of literature on AI in marketing by combining empirical evidence with practical insights from professionals. It highlights the duality of opportunity and challenge in AI-driven hyper-personalization and underscores the importance of balancing technological innovation with transparency, ethical safeguards, and human oversight. The findings offer actionable implications for businesses aiming to leverage AI responsibly while maintaining consumer trust and competitiveness in the digital era.

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