Artificial Intelligence-Driven Digital Marketing: Transforming Customer Experience and Enhancing Business Performance

Abstract

Artificial Intelligence (AI) technologies have swept through digital marketing, changing the way that businesses interact with their customers and create value. While previous studies have shown the tactical advantages of each AI marketing tool, empirical evidence of the combined impact of core AI marketing capabilities on customer experience (CX) and business performance (BP) is still scarce, especially in industry conditions in emerging markets. This study proposes and empirically examines a mediated model between three AI marketing capabilities (AI-driven personalization, AI chatbots and conversational AI, and predictive analytics) and CX and BP, based on the resource-based view and service-dominant logic. 400 digital-marketing professionals from six industries were surveyed using a structured questionnaire. Descriptive statistics, reliability and validity assessment, Pearson correlations, multiple regression, and bootstrapped mediation analysis were performed using IBM SPSS Statistics 26. Results show that all three AI capabilities significantly positively affect both CX (R2 = 0.31) and BP (R2 = 0.36), and that the AI-capability – BP relationships are partially mediated by CX. AI-driven personalization is the most potent direct effect on CX (β = 0.25, p <.001), and AI chatbots have the greatest direct impact on BP (β = 0.22, p <.001). The study extends the AI-marketing literature by offering an integrated empirically supported model and managerial advice regarding capability-level investment priorities for companies in the process of digital transformation using AI.

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