Artificial Intelligence (AI) has fundamentally restructured e-commerce by transitioning mass marketing into hyper-personalized consumer experiences. This research paper evaluates the empirical impact of AI-driven personalization on consumer buying behaviour and customer retention rates. Analyzing industry-wide data from leading e-commerce platforms from FY 2020-21 to FY 2024-25, alongside projections through FY 2026- 27, this study utilizes key metrics including AI Personalization Accuracy Scores, Conversion Rates, and Customer Retention Rates (CRR). Empirical findings indicate that organizations increasing their AI personalization integrations witnessed a proportional surge in CRR from 32% to 61%. Pearson correlation analysis reveals a highly significant positive association (r = 0.962 for AI Score vs. CRR; r = 0.941 for AI Score vs. Conversion Rate), demonstrating that predictive algorithms directly drive operational profitability and long-term customer loyalty.

Mithilesh Naresh Shahu, Dr. Nitin Vasantrao Ganorkar, "Impact of AI-Driven Personalization on Consumer Buying Behaviour and Customer Retention in E-Commerce" International Journal of Scientific Research and Engineering Development, V9(5): Page(1653-1655) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.