Abstract:
The primary objective of this study was to explore the role of AI tools on consumer purchase intentions, through the mediating effect of consumer engagement. This investigation delved into how different AI functionalities, such as chatbot efficiency, image search functionality, recommendation system efficiency, and automated after-sales service, influence consumer perceptions and their subsequent purchasing decisions. To achieve this, a total of 306 questionnaires were distributed to consumers, ensuring a diverse representation of the target population. Structural Equation Modeling (SmartPLS-SEM) was employed to assess the hypotheses, providing a robust analytical framework for understanding the complex relationships between AI tools, consumer engagement, and consumer purchase intentions. The study's results revealed a significant indirect positive association between AI tools and consumer purchase intentions, mediated by consumer engagement. This indicates that while AI tools alone can influence purchase decisions, their impact is significantly enhanced when they improve consumer engagement. An intriguing aspect unearthed in this research is the mediating role of consumer engagement in the relationship between AI tools and consumer purchase intentions. These findings bear particular importance for managers and marketers in the business industry, emphasizing the need for the effective implementation of high-quality AI strategies. By focusing on improving AI functionalities, companies can enhance the perceived value of their services, leading to increased consumer purchase intentions. The study recommends that organizational leadership incorporate strategies to enhance AI tools, such as optimizing chatbot interactions, ensuring accurate and efficient image search capabilities, and using advanced recommendation systems to improve overall consumer purchase intentions.