Consumer perception of AI-driven personalization in social media marketing: opportunities, risks, and implications for brand management

Artificial intelligence (AI) has fundamentally transformed digital marketing by enabling highly personalized consumer experiences across social media platforms. Through machine learning algorithms, predictive analytics, and behavioral tracking systems, brands can deliver individualized content and targeted advertising in real time. While AI-driven personalization enhances relevance, engagement, and marketing efficiency, it simultaneously raises ethical concerns regarding privacy, transparency, and user autonomy. This study investigates consumer perceptions of AI-based personalization on social media platforms, particularly Instagram and TikTok, with a focus on perceived benefits, risks, and implications for brand trust. The research employed a quantitative cross-sectional survey design involving 120 active social media users aged primarily between 18 and 25. Data were collected using structured Likert-scale questionnaires distributed online. The findings demonstrate that users generally appreciate personalization for improving convenience, content relevance, and overall user experience. However, respondents also expressed significant concerns regarding excessive data collection, algorithmic opacity, and intrusive advertising practices. The results reinforce the personalization–privacy paradox, illustrating the tension between consumers’ desire for personalized experiences and their concerns about surveillance and digital privacy. The study contributes to the growing literature on AI-driven marketing by integrating empirical findings with Privacy Calculus Theory and contemporary discussions surrounding ethical AI implementation. The research further emphasizes the importance of transparency, responsible data governance, and consumer trust in the successful deployment of AI-powered personalization strategies. Practical recommendations are proposed for brand managers seeking to balance technological innovation with ethical responsibility and long-term consumer loyalty.