IMPACT OF ARTIFICIAL INTELLIGENCE ON CONSUMER PURCHASING DECISIONS

Abstract

This study investigates the impact of Artificial Intelligence (AI) on consumer purchasing decisions, specifically in the context of online banking among university undergraduates in North-Central Nigeria. The research aims to examine the role of AI-driven tools, particularly Chatbots, in enhancing consumer trust and loyalty, as well as the influence of ethical concerns such as privacy and algorithmic bias on consumer perceptions. The study adopts a quantitative approach, utilizing a descriptive survey design with a sample of 627 university undergraduates. The findings reveal a significant relationship between the use of chatbots and overall consumer trust (P<.001), highlighting the importance of AI-driven tools in improving customer satisfaction and loyalty (p<.001). Additionally, ethical concerns were found to play a crucial role in influencing consumer trust in AI systems, with transparency and data protection being key factors (P<.001). The study also demonstrates that both AI tools and ethical considerations contribute jointly to consumer trust and loyalty in online banking (P<.001). Based on these findings, the study recommends that online banking platforms should invest in AI technologies, prioritize ethical practices, and educate consumers about the benefits of AI to foster trust and loyalty.