Artificial Intelligence (AI) is changing personalized marketing by enabling firms to analyse consumer data, predict preferences, automate interactions, and deliver individualized content, recommendations and offers. This research paper examines the role of AI in personalized marketing, with particular attention to consumer engagement, perceived relevance, trust, purchase intention, and privacy. A structured literature-based approach was used to synthesize recent academic evidence on AI-enabled personalization and consumer behaviour. The review indicates that personalization can improve relevance, usefulness, engagement and loyalty when consumers perceive the recommendations as valuable and non-intrusive. At the same time, excessive personalization, unclear data practices, and lack of transparency can create privacy concerns and reduce trust. Recent empirical studies also show that perceived relevance and transparency are important drivers of consumer responses to AI-enabled marketing. The paper concludes that successful AI personalization requires a balance between analytical precision and consumer control. Marketers should therefore combine AI capabilities with transparent communication, responsible data practices, consent, fairness and continuous measurement.

Nikita Gonde, Dr. Nitin Vasontrao Ganokar, "Role of Artificial Intelligence in Personalized Marketing" International Journal of Scientific Research and Engineering Development, V9(5): Page(807-810) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.