The impact of artificial intelligence recommendation on consumer behaviour in the e-commerce industr

Java Python The impact of artificial intelligence recommendation on consumer behaviour in the e-commerce industry

Abstract

In this study, the impact of AI shopping recommendation systems on internet users' purchasing experience and purchase intention is explored, focusing on four key aspects: entertainment, relevance, usability, and user privacy data security. Firstly, AI recommendation systems enhance the shopping experience by providing personalized recommendations, making the shopping process more enjoyable and engaging. Secondly, AI systems can accurately analyze user behavior. and needs, offering highly relevant product recommendations that significantly improve user satisfaction. Thirdly, modern AI recommendation systems are designed to be intuitive and user-friendly, enabling users to easily navigate and interact with the system, thereby enhancing the overall shopping experience. Finally, regarding user privacy and data security, AI systems employ techniques such as data anonymization and encryption to protect user information effectively, fostering greater trust in the system.

User data was gathered through questionnaires and subsequently analyzed using a multiple linear regression model with SPSS 2.0. This model quantified the relationships between the identified key aspects and users' purchasing experience and purchase intention. The analysis demonstrates that by enhancing entertainment, relevance, usability, and user privacy data security, AI shopping recommendation systems significantly improve internet users' purchasing experience and purchase intention.

Table of Contents

CHAPTER 1

1.1 Introduction

With the rise of e-commerce as a growth model, online shopping is gradually changing traditional shopping behavior, offering consumers unprecedented convenience and a vast array of choices at their fingertips. Over the past decade, online retail has grown exponentially, creating new opportunities for businesses and consumers alike. The rise of e-commerce platforms such as Amazon, Alibaba, eBay, and Shopee has facilitated this shift, enabling seamless transactions across borders and time zones (Gupta & Bansal, 2019). This e-commerce marketplace has not only expanded access to goods and services, but has also intensified competition among retailers, prompting them to innovate to attract and retain customers.

One of the key innovations in e-commerce is the implementation of recommender systems. These systems analyze user data to provide personalized product recommendations that enhance the shopping experience. Traditional recommender systems rely on collaborative filtering and content-based filtering methods to predict and recommend items that a user may like based on the user's past behavior. or the behavior. of similar users (Fu & Ma, 2021). Such systems have proven to be effective in increasing user engagement and driving sales because they make the shopping process more intuitive and tailored to individual preferences. Traditional e-commerce marketing recommendation systems usually use consumers' historical consumption and browsing information on the current platform's website to further recommend personalized goods and services, and based on high-tech based on 'Big Data + Artificial Intelligence (AI)', e-commerce platforms mine and analyze a large amount of user data aiming to provide consumers with more accurate personalized goods and services (Alamdari & Navimipour, 2020).

Compared with the traditional e-commerce marketing recommendation system, e-commerce platform. enterprises realize precision marketing through AI intelligent recommendation system, which on the one hand can improve the efficiency of information data processing on the platform. website and consumers' willingness to buy; on the other hand, it can improve consumers' satisfaction and loyalty to the platform. website (Sharma & Lijuan, 2015). Some studies have shown that AI intelligent recommendation can have an important impact on consumer behaviors such as consumers' perceived value and purchase intention, such as affecting consumers' psychological distance to online shopping, consumers' perceived experiential value and purchase intention (Yang, Tang, Men & Zheng, 2021). With the shift from traditional shopping to mobile shopping and the development of marketing thinking such as "human-centered" and "user-first", consumers can shop anytime and anywhere through e-commerce platforms, which strengthens their online impulse purchase intention, among which the influence of personalized intelligent recommendation by AI has a significant impact. The influence of AI's personalized smart recommendations is crucial. Factors affecting consumers' online purchases are manifold, including the need for accurate and detailed product information, as well as the strength of prices and discounts, and the user experience of the website, etc., of which the strongest influence is accurate product information, which is a key factor influencing consumers' consumption (Islam & Daud, 2011). Although there have been studies showing that AI recommendation has an impact on consumers' purchase intention , these studies mainly focus on the impact of AI recommendation system on consumers' information adoption intention and purchase behavior. under traditional marketing, and these studies lack a consumer behavioral perspective to study the process of its impact on consumers' online purchase intention.

Overall, the rise of artificial intelligence provides the possibility to drive the quality online shopping scene, and the functions of the AI recommendation system such as information presentation, system interaction and community influence and its impact on consumer behaviour have influenced consumer behaviour to a certain extent. For the above research, this paper uses SOR theory and consumer behaviour theory to analyse, collects data through questionnaire survey method, and uses spss software to conduct in-depth research with linear regression model in business analysis, specifically analysing in what way AI intelligent recommendation affects consumer's purchasing decision and the overall shopping experience and the difference of consumer's experience and satisfaction in this process.

1.2 Problem Statement

The integration of AI recommender systems in the e-commerce industry has to some extent changed the way consumers interact with online platforms. This is especially true through AI-powered recommender systems. Despite the increasing use of AI recommendations, there are still key issues that need to be addressed, and these key issues include the lack of understanding in current research of how AI recommender systems affect consumer behaviour in e-commerce, particularly in terms of trust, satisfaction and willingness to use. This research will provide insights into the psychological and behavioural impacts of AI systems on consumers, including information presentation, system interactions and community impacts. This helps to develop the potential of AI recommendation systems, so it is essential to understand how these AI recommendations affect consumers from their perspective. A full understanding of this process through research can better optimise their impact on consumer behaviour. This study aims to investigate these key issues and provide actionable insights for e-commerce platforms.

Although several studies have explored the impact of AI's personalised recommender systems on consumer decision-making, these studies often lack a comprehensive analysis of consumer trust, satisfaction and willingness to use.Nguyen (2021) points out that most of the existing research focuses on the technical implementations of recommender systems, and there is less research on the consumer interaction experience . Ideally, consumers would have a high level of trust and acceptance of AI recommender systems, leading to increased user engagement and satisfaction (Rodrigues, 2021). However, the potential of AI recommender systems has not yet been fully realised due to a lack of in-depth knowledge of consumer trust and satisfaction.

The Problem Statement of this study is to analyse the impact of AI recommender systems on consumer behaviour by revealing the key factors that influence consumer trust, satisfaction and willingness to use. From the study of consumer behaviour and psychological level, the aspects of information presentation, system interaction and community influence will be analysed in depth, and optimisation strategies will be proposed at the end.

1.3 Research Questions

This study addresses six key research questions to provide a comprehensive understanding of how AI recommendation systems influence consumer behavior. Each question is designed to explore different dimensions of consumer actions and perceptions in the context of these systems.

1. ‘How do consumers perceive AI recommendations?’ This question explores how consumers view various aspects of AI recommendation systems, including their entertainment value, ease of use, and relevance. Understanding these perceptions is crucial for assessing how well the recommendation systems meet consumer expectations. For example, does the entertainment value enhance engagement, and how does the ease of use impact satisfaction? Insights into consumer perceptions help identify factors that drive positive or negative experiences and guide the refinement of recommendation systems to better align with consumer preferences.

2. ‘How do AI recommendations influence consumers' purchase decisions and overall shopping experience?’ This question examines the role of AI recommendations throughout different stages of the shopping process, from information search to evaluation and final decision-making. By understanding how recommendations impact these stages, the study aims to optimize these systems to better support consumers. For instance, how do recommendations shape decision-making, and to what extent do they affect the final purchase choice? This analysis helps in enhancing the design and functionality of recommendation systems to improve consumer decision-making and overall shopping experience.

3. ‘How do the entertainment value and ease of use of AI recommendations impact the shopping experience?’ This question focuses on evaluating whether the entertainment value and ease of use of AI recommendations contribute significantly to the shopping experience. For example, does a recommendation system that provides entertaining content lead to a more enjoyable shopping experience? How critical is ease of use in ensuring that consumers can effectively navigate and utilize the system? Understanding these factors helps in designing recommendation systems that not only engage users but also streamline their shopping processes, enhancing overall satisfaction.

4. ‘How does the relevance of AI recommendations and data security measures affect consumer purchase intentions and trust?’ This question investigates how the relevance of recommendations and the perceived security of user data influence consumer trust and purchase intentions. It examines whether recommendations that closely match consumer preferences increase the likelihood of purchase and how robust data protection measures affect trust. For example, does the relevance of a recommendation impact a consumer’s willingness to make a purchase, and how does data security influence overall trust in the recommendation system? This analysis provides insights into how effective recommendations and strong data protection can enhance consumer trust and drive purchasing decisions.

5. ’What role do relationship satisfaction and trust play in the relationship between AI recommendation features and consumer outcomes?‘ This question explores how intermediary factors such as relationship satisfaction and trust mediate the effects of AI recommendation features on consumer outcomes. Specifically, it looks at how satisfaction with the recommendation experience and trust in the system influence shopping experience and purchase intentions. For instance, does higher satisfaction with the recommendation system correlate with a better shopping experience, and how does trust impact the decision to follow through with a purchase? Understanding these mediating factors offers insights into the psychological dynamics that affect consumer responses to AI recommendations.

By addressing these questions, the study aims to gain a thorough understanding of how AI recommendation systems affect consumer behavior, focusing on enhancing user experience and driving purchasing decisions.

code	Research Question
Q1	How do consumers perceive AI recommendations?
Q2	How do AI recommendations influence consumers' purchase decisions and overall shopping experience?
Q3	How do the entertainment value and ease of use of AI recommendations impact the shopping experience?
Q4	How does the relevance of AI recommendations and data security measures affect consumer purchase intentions and trust?
Q5	What role do relationship satisfaction and trust play in the relationship between AI recommendation features and consumer outcomes?

1.4 Research Objectives

The primary objectives of this research are to explore and analyze the impact of AI recommendation systems on consumer behavior. Specifically, this study aims to achieve the following goals:

1. Evaluate Consumer Perceptions of AI Recommendations: To understand how consumers perceive AI recommendation systems, including their entertainment value, ease of use, and relevance. This objective seeks to assess how these factors influence user satisfaction and acceptance of recommendation systems, providing insights into how well these systems align with consumer expectations.

2.Analyze the Impact of AI Recommendations on Purchase Decisions and Shopping Experience: To examine the role of AI recommendations in various stages of the consumer decision-making process. This objective focuses on understanding how recommendations affect information search, evaluation, and final purchase decisions, as well as their overall impact on the shopping experience. By identifying how recommendations influence these stages, the research aims to optimize recommendation systems to better support consumer decision-making and enhance the shopping experience.

3. Assess the Effects of Entertainment Value and Ease of Use on Shopping Experience: To determine the significance of the entertainment value and ease of use of AI recommendations in shaping the consumer shopping experience. This objective involves evaluating whether these factors contribute positively to user satisfaction and engagement, and how they influence the effectiveness of the recommendation system in facilitating a smooth shopping process.

4. Investigate the Influence of Relevance and Data Security on Purchase Intentions and Trust: To explore how the relevance of AI recommendations and the perceived security of user data impact consumer trust and purchase intentions. This objective aims to understand the relationship between the accuracy of recommendations, the robustness of data protection measures, and their effects on consumer trust and willingness to make purchases.

5. Examine the Role of Relationship Satisfaction and Trust in Mediating the Effects of AI Recommendations: To analyze how intermediary variables such as relationship satisfaction and trust mediate the relationship between AI recommendation features and consumer outcomes. This objective seeks to understand how these factors influence the shopping experience and purchase intentions, offering insights into the psychological mechanisms that affect consumer responses to AI recommendations.

By addressing these objectives, this research aims to provide a comprehensive understanding of how AI recommendation systems affect consumer behavior, with the goal of improving the design and effectiveness of these systems to enhance user experience and drive purchasing decisions.

1.5 Significance of the Study

This study offers a valuable contribution to the theoretical understanding of consumer behavior. within the realm of AI-driven recommendation systems. By examining how AI recommendations influence consumer perceptions and actions, the research enhances existing knowledge about consumer decision-making processes and technology adoption. The study provides insights into how factors such as entertainment value, ease of use, relevance, and data security impact consumer trust and purchase intentions. Additionally, by investigating intermediary variables like relationship satisfaction and trust, the study helps to clarify the mechanisms through which AI recommendations affect consumer behavior. These contributions are important for refining theoretical models of consumer behavior. and technology acceptance, particularly in the context of advanced recommendation technologies.

Practically, this study offers useful insights for businesses aiming to improve AI recommendation systems and enhance customer experiences. Understanding how different aspects of AI recommendations—such as their relevance, ease of use, and data security—affect consumer behavior. can help businesses design more effective recommendation strategies. The findings provide guidance on which factors are most important for building consumer trust and increasing purchase intentions. By highlighting the role of entertainment value and ease of use in shaping the shopping experience, the study suggests ways to tailor recommendation systems to better meet consumer needs. Furthermore, the insights into how relationship satisfaction and trust mediate the effects of AI recommendations can inform. strategies for improving customer interactions and fostering loyalty. Overall, this research supports practical efforts to develop recommendation systems that align with consumer expectations and enhance their overall shopping experience.

In conclusion, this study aims to bridge the gap between theoretical knowledge and practical applications, provide a holistic view of the impact of AI recommendation systems on consumer behaviour, and offer strategies to improve their effectiveness and user acceptance.

1.7 Organization of Chapters

This paper is titled "The impact of artificial intelligence recommendation on consumer behavior. in the e-commerce industry". The full text is divided into five chapters as follows:

Chapter 1: Introduction. It mainly explains the research background, Problem Statement, Research Questions, Research Objectives, Significance of the Study, etc.

Chapter 2: Literature Reviews. It mainly sorts out the literature from the following six key parts. And explains the key definitions. And analyzes the importance and impact of AI recommendation from the international and corporate perspectives. This chapter proposes the theoretical basis of this paper, namely SOR theory and consumer behavior. theory. On these basis, the variables of this study are refined, the relationship between variables and the Conceptual Framework of the study are determined.

Chapter 3: Research Methodology. It mainly explains the research methods of this study, including questionnaire design and data collection techniques.

Chapter 4: Data Analysis. This chapter mainly introduces the analysis methods used to interpret the collected data. We first evaluate the normality of the data to ensure the validity of the statistical test, then reveal the relationship between variables through factor analysis, and confirm the consistency of the measurement tool through reliability analysis. This chapter also introduces the profile of the respondents through tables and charts. Finally, this study combines data analysis with the research objectives to evaluate the extent to which the research results have achieved the research objectives.

Chapter 5: Research Conclusions and Recommendations. This chapter will synthesize the research results and explore their impact. This chapter first discusses, creatively combines the research results with the research objectives, and proposes explanations. On these basis, this chapter will propose feasible suggestions for improving the quality and efficiency of AI recommendations, thereby improving consumers' user experience. This chapter will describe the limitations of the current research and propose directions for future research. Finally, the main research results and their overall significance are summarized.

CHAPTER 2- Lit Review

2.1  Introduction

In contemporary electronic commerce, AI recommendation systems have become crucial in shaping consumer behavior. These systems use advanced algorithms to offer personalized product suggestions, which significantly impact various stages of the consumer decision-making process (Jannac The impact of artificial intelligence recommendation on consumer behaviour in the e-commerce industryHaskell h & Adomavicius, 2016). To systematically study the impact of AI recommendations on consumer behavior, this section organizes existing literature and analyzes it from six key perspectives.

2.1.1 Consumer Perceptions

Accurate personalised recommendations in e-commerce platforms can efficiently improve the shopping efficiency of consumers. Correctly personalised recommendations can bring a sense of surprise and satisfaction to consumers, which can effectively enhance the enjoyment and positive experience of shopping, thus optimising the consumer shopping experience.Yoon and Lee (2021) state that AI recommendation systems significantly influence consumer behaviour and satisfaction, indicating positive consumer perceptions of these technologies. In this process, personalised systems will not only recommend products based on consumers' historical behaviour, but also recommend new categories of products based on similar users' preferences, which can also increase the range of choices and enrich the consumer's shopping experience In the field of recommender systems, there is a growing interest in understanding the interactions between various aspects of behavioural research, intelligent systems, and decision support systems. And AI-powered technologies play a key role in enhancing the capabilities of these aspects, leading to more effective recommender systems (Konstan, 2012). For example, intelligent systems powered by AI can process large datasets to provide accurate and personalised recommendations based on user behaviour, preferences and decision-making processes. International Business Machines (IBM) released its third biennial consumer research report titled Revolutionising Retail with AI: Customers Won't Wait. The report is the result of a survey of 20,000 global consumers in 26 countries on their digital habits and AI usage. One of the key findings of the report is that consumers are dissatisfied with the retail experience. Only 9 per cent of respondents were satisfied with shopping in brick-and-mortar shops, while only 14 per cent were satisfied with shopping online. Interestingly, consumers surveyed showed a strong interest in using AI technology to enhance the shopping experience. 59% of respondents said they would like to use AI apps, and 80% of respondents who had not used AI for shopping said they were interested in trying it (Armonk, 2024). How AI assistants could help shoppers in the future, Luq Niazi, Global Managing Partner, IBM Consulting and Industry and Global Consumer Sector Leader, said IBM's 2024 Consumer Study found that more than half of consumers would like to use an AI assistant while shopping, but there is currently a significant gap between the capabilities of these AI tools and consumers' expectations (Ali, 2024).

2.1.2 The impact of AI recommendations on the shopping decision-making

A large number of studies have explored the impact of AI recommender systems on consumer purchasing decisions and behaviours, and Kumar's (2024) study found that personalised recommendations can significantly increase conversion rates and average order values, and that tailored suggestions not only enhance user engagement and loyalty, but also have varying degrees of impact across different product categories. This finding underscores the potential of AI recommender systems to drive consumer behaviour.AI recommender systems are effective in stimulating consumers' desire to buy by increasing the frequency and amount of spending through accurate recommendations. When consumers browse a certain type of product, the related products recommended by the system may trigger their behaviour to make additional purchases, thus increasing the platform's sales and profits (Pathak & Garfinkel, 2010). However, there may be a risk of system algorithmic bias and manipulation in the recommendation process. Platforms may recommend more profitable products rather than products that are truly appropriate for consumer needs (Marcellis, 2022). Such manipulation may harm consumers' interests and trust in e-commerce platforms.The impact of AI personalisation on search may also be seen in other ways. For example, when searching for unknown product names, consumers sometimes do not know the name of the product they want to buy, and eliminating them one by one would waste a lot of time or even abandon the desire to buy the product. A convenient search method combines voice input and image recognition technology to perform. image matching by inputting detailed attributes of the product to find other images that are similar or related to the input image. the AI system analyses the features and metadata of the image to be able to recommend products that are related to the input image and provide a link to purchase. This image recognition-based recommendation system is widely used in Southeast Asia due to the fact that consumers in the region have a high interest in fashion trends and tend to look for products recommended by online celebrities through images. Research has shown that image recognition technology can not only enhance the accuracy of recommendation systems, but also significantly improve consumers' shopping experience (Zhang et al., 2021). In this context, the introduction of image search technology effectively meets Southeast Asian consumers' demand for quick access to Netflix products, enabling them to find their favourite fashion items more conveniently (Chen & Xu, 2022).

2.1.3 Entertainment Value & Ease of Use

The entertainment value and ease of use of AI recommendation systems are critical factors influencing consumer behavior. Research has shown that the entertainment value of recommendations, which includes the enjoyment and engagement derived from the recommendation process, significantly affects consumer satisfaction and engagement (Hassanein & Head, 2007). Consumers are more likely to engage with and respond positively to recommendation systems that provide an enjoyable and stimulating experience, enhancing their overall shopping experience (Liu et al., 2020). This enjoyment, however, is often secondary to the system’s ease of use, which remains a core determinant of user satisfaction. Ease of use refers to the simplicity and intuitiveness of the recommendation interface, which facilitates user interactions and contributes to a smoother shopping process (Davis, 1989). The perceived ease of use has been consistently linked to higher user satisfaction and increased likelihood of system adoption (Venkatesh & Bala, 2008). While entertainment value can enhance engagement and make the shopping experience more pleasant, ease of use is fundamental in ensuring that consumers can efficiently navigate and utilize recommendation systems without frustration. Thus, while entertainment value adds to the appeal of AI recommendations, ease of use is crucial for maintaining a positive and functional consumer interaction with the system.

2.1.4 Impact of Accuracy and Relevance of AI Recommendations

The impact of recommendation accuracy and relevance on consumer trust has also received widespread attention. Rohden (2023) found that highly accurate recommendations enhance consumer satisfaction and trust, while recommendation relevance is a key factor in maintaining consumer engagement and trust. On the one hand accurate and relevant recommendations not only save consumers' time and energy, but also increase consumers' repurchase rate of products and users' stickiness to the platform. (Zhang & Zhao, 2018). This suggests that improving the accuracy and relevance of recommendation systems is an important way to enhance consumer trust. When the accuracy of recommendations is improved, the sales of the platform. will be improved accordingly. The model must be localised and must be familiar with local brands as well as words, and as the accuracy of the AI recommendations increases, the sales of the platform. also increase. For example, Lazada has developed a "graphic multimodal recognition" model that recognises more than 97% of Southeast Asian brands. The system can accurately search by uploading photos of celebrities wearing Tommy Hilfiger white polo shirts without incorrectly recommending Abercrombie & Fitch white polos, demonstrating high recommendation accuracy. After solving the first two key issues, Lazada took the lead in the Southeast Asian market and saw a five-fold increase in the number of users of its relevant features in just six months. Research has shown that the accuracy of recommendation systems has a direct impact on consumer satisfaction and the platform's sales performance (Jiang & Li, 2023). Therefore, by improving recommendation accuracy, Lazada not only enhanced user experience, but also significantly boosted sales growth (Smith & Chen, 2022).

2.1.5 Differences in Consumer Behavior

Studies have shown significant differences in the response of different demographics and user profiles to AI recommendation systems.Singh's (2021) study shows that the process of AI recommendation involves the system analysing the user's demographics such as gender, age and other demographics, and making more accurate matches for the user through data analysis. The study suggests that younger consumers are more receptive to AI recommendations than older groups, whereas younger consumers may have a greater preference for fashion and tech products, whereas older ones may have a greater preference for health science lifestyle. products. Therefore different demographic information can also imply different needs and preferences, and by implementing precise marketing strategies for different groups of people can improve the marketing effectiveness and conversion rate of e-commerce businesses (Saluja, Soth & Pawar 2023). Socio-economic factors and previous online shopping experiences also play an important role in shaping consumer responses, for example, high-income consumers may be inclined to purchase luxury or premium goods, whereas low-income consumers may be more focused on value for money (Kotler & Keller, 2016). Consumers with higher levels of education are usually more knowledgeable about product information and brands, and they may be more cautious and rational in their purchase decisions (Baker & Churchill, 2018). Research suggests that positive shopping experiences can enhance consumers' trust and satisfaction with shopping platforms, while negative shopping experiences may lead to customer attrition (Hsu, Chuang, & Hsu, 2014). Experienced consumers are more likely to choose familiar platforms for shopping because they have higher trust in the service quality and product reliability of these platforms (Venkatesh & Bala, 2008). These findings reveal the diverse user needs that recommender systems need to consider in their design and application.

2.1.6 Consumer acceptance of privacy and data security

Users are also evolving. They are becoming proactive, knowledgeable, and prioritise privacy. As a result, sellers may need to make efforts to build trust with these users. The impact of privacy and data security issues on consumer acceptance of AI recommendation systems cannot be ignored. Personalised recommendation systems rely on the collection and analysis of large amounts of consumer data, which raises serious privacy and data security concerns. The main issues include false information, fraud, and copyright infringement, and consumers may be concerned about the misuse or disclosure of their personal information, which reduces their trust in recommender systems.Wang (2021) points out that consumers are wary of data use and storage, and that addressing these issues through strong data protection measures and clear communication can enhance consumer trust and acceptance. Singh (2024) further emphasises the importance of transparency and consumer control over data, which is crucial in fostering positive consumer attitudes towards AI systems. Therefore unsupervised learning in the e-commerce domain is very important. In e-commerce AI recommendation systems, machine learning relies on data analysis of items and orders, which usually requires an exhaustive labelling system. However, many orders are virtually unlabelled. For example, Taobao, a subsidiary of China's AliPay, uses AI techniques to categorise orders for verification and labels these orders through unsupervised learning, which is subsequently fed into the recommender system for intelligent recommendations (Zhang & Zhang, 2021). This approach not only improves the accuracy of recommendations, but also demonstrates the positive role of unsupervised learning in enhancing consumer acceptance of privacy and data security (Li, 2022).

2.1.7 Mediating Roles

In exploring the impact of AI recommendation systems on consumer behavior, relationship satisfaction and trust play crucial mediating roles. Relationship satisfaction, which reflects the overall contentment of consumers with their interaction with the recommendation system, has been shown to significantly influence both shopping experience and purchase intentions (Morgan & Hunt, 1994). Satisfied consumers are more likely to develop positive attitudes towards the recommendation system and exhibit higher engagement levels, which can enhance their overall shopping experience and increase their likelihood of making a purchase (Hennig-Thurau, Gwinner, Walsh, & Gremler, 2004). Similarly, trust in the recommendation system is a fundamental determinant of consumer behavior. Trust encompasses the confidence consumers have in the accuracy of recommendations and the protection of their personal data. Research indicates that higher levels of trust lead to increased acceptance of recommendations and greater willingness to share personal information (Sirdeshmukh, Singh, & Sabol, 2002). When consumers trust that the recommendation system will deliver relevant suggestions and safeguard their privacy, they are more likely to act on those recommendations and maintain a positive shopping experience (Chen & Zhang, 2019). Thus, both relationship satisfaction and trust are essential in shaping how consumers interact with AI recommendation systems, influencing their overall engagement and purchasing behavior.

These literatures provide a solid theoretical foundation for this study, and by exploring the multifaceted effects of AI recommendation systems on consumer behaviour, they provide important insights and directions for further research.

2.2 key definitions

When studying the impact of artificial intelligence (AI)-driven recommender systems on consumer behaviour in e-commerce, it is crucial to clarify key terms, features and attributes. These definitions will provide the basis for subsequent analyses and discussions.

AI-Driven Recommendation Systems: AI recommendation systems use machine learning algorithms and data analytics to provide personalised recommendations based on user behaviour and preferences. Its key features include personalisation, dynamic adaptation and data-driven. Recommendation systems analyse user data (e.g., browsing history, purchase history, etc.) and use algorithms (e.g., collaborative filtering and content filtering) to optimise recommendations (Ricci, Rokach, & Shapira, 2015).

Consumer Perceptions: Consumer perceptions refer to their overall view of the AI recommendation system, including trust, satisfaction, and ease of use. Trust reflects confidence in the reliability of the system, satisfaction is the degree of satisfaction with the quality of recommendations, and ease of use focuses on the convenience of use (Hsu, Chuang, & Hsu, 2014). The system's interface design and feedback mechanisms directly affect these perceptions (Srinivasan & Moorman, 2005).

Consumer Purchasing Decisions: Consumer purchasing decisions cover the processes of information search, choice evaluation, and final purchase. Factors such as personalised recommendations, product reviews, brand reputation, price and promotions all influence decisions (Kotler & Keller, 2016). The conversion rate and order value of recommender systems are key metrics to assess their impact (Chechi & Malerba, 2021).

Recommendation Accuracy and Relevance: Recommendation accuracy and relevance refers to how well the recommended content matches consumer needs and interests. High-quality data and algorithms are critical to improving recommendation accuracy and relevance (Jannach & Adomavicius, 2016). The matching ability of the algorithm and the quality of the data directly affects the effectiveness of recommendations (Smith & Linden, 2017).

Privacy and Data Security: Privacy and data security involves the protection of consumers' personal data, including data encryption, transparency, and user control. Data protection prevents unauthorised access, transparency provides information about data usage, and user control allows consumers to manage data sharing (Solove, 2021). The use of data encryption and clear privacy policies help to safeguard consumer privacy and choice (Culnan & Bies, 2003).

By clarifying these key definitions, characteristics and attributes, the impact of AI-driven recommender systems on consumer behaviour in e-commerce can be systematically understood and analysed, providing a solid theoretical foundation for further research.

2.3 Global perspectives

Omni-channel marketing is gaining traction as customers expect a seamless service experience across multiple channels. However, this poses a challenge for brands to ensure consistency of service.Zendesk reports that 35 per cent of customers expect customer service across multiple channels (Zendesk, 2022). In this context, the application of AI recommender systems is particularly important to help e-commerce companies to improve the intelligence of their recommender systems and enhance operational portability, research capabilities and collaboration. By combining academic research with real-world applications, AI recommender systems offer e-commerce businesses the opportunity to increase turnover in the online environment (Smith & Linden, 2017). AI recommendation engines increase user satisfaction and brand loyalty by delivering a consistent and personalised experience across multiple channels (e.g., social media, websites and mobile applications). They use user data (e.g., search history and purchase history) to provide personalised suggestions, for example, when a user searches for a product on a website, the recommendation engine can recommend related items through channels such as email. Research has shown that personalised content can significantly increase brand loyalty, with Microsoft reporting that 96% of customers believe that great customer service and experience is critical to brand loyalty (Microsoft, 2021).

AI recommendation systems are widely used in Asia, especially in China. Chinese e-commerce giants such as Alibaba and Jingdong use advanced AI technology to provide highly personalised shopping experiences (Wang & Zhang, 2022). Research shows that Asian consumers are generally more receptive to AI technology, but cultural differences affect their responses. Chinese consumers typically trust systems based on social recommendations, while Japanese consumers focus more on the accuracy and personalisation of recommendations (Li, 2021). In developing countries, although the penetration of AI recommendation systems is low, these markets show great potential for growth as the acceptance of digital shopping increases (Chen & Xu, 2020). However, limitations in infrastructure and level of technological development are the main challenges.Kumar and Singh's (2022) study points out that despite the weaker technological infrastructure, AI recommender systems have a huge potential for growth in these markets as internet penetration increases and mobile devices are widely used.

Taken together, research on AI recommender systems from a global perspective reveals diversity across regions in terms of technology acceptance, privacy protection, and cultural differences. These differences not only influence the implementation strategies of AI technologies, but also provide a rich background and case studies for further research. Through in-depth analysis of the global market, the application of AI recommender systems in different environments can be better understood and optimised to provide theoretical support and practical guidance for promoting the development of global e-commerce.

2.4 zooming in

In order to gain a deeper understanding of the application of AI-powered recommender systems and their impact in global markets, it is necessary to focus on specific markets, and this study analyses case studies of two of the largest e-commerce platforms in East Asia. These case studies not only help to reveal the diverse applications of AI recommender systems in different cultures and market environments, but also provide valuable experiences and lessons learned to help understand how to optimise AI technology to enhance consumer experience and satisfaction.

Lazada

Lazada specialises in providing tailored shopping experiences through data-driven personalisation. The platform. uses customer data analytics to optimise product recommendations and marketing campaigns to increase conversion rates. According to Lazada's report, the introduction of personalised recommendation systems has led to an increase in conversion rates by about 10% (Lazada, 2023). This is due to the recommendation system's ability to accurately match users based on their behaviours and preferences, improving shopping relevance and user satisfaction. Its omni-channel strategy strengthens brand image and engages consumers by integrating multiple channels (Lazada, 2022).AI technology plays a key role in Lazada's recommender system by analysing user behaviours and purchasing history to provide personalised suggestions, thus increasing customer engagement and brand loyalty (Liu, 2021). In addition, Lazada has introduced augmented reality (AR) technologies such as virtual trial tools to further enhance user experience (Lazada, 2022).

Taobao (Alibaba)

Taobao is transforming the consumer shopping journey by embedding artificial intelligence deeply into its platform. One notable innovation is Taobao Ask, a generative AI shopping assistant to be launched in 2023. This is an AI-powered market insight tool that helps merchants analyse consumer demand, industry trends and competitor strategies (Zhang, 2024). The tool allows for real-time adjustments in areas such as product mix and pricing to keep merchants competitive. Ask helps users by answering product-related questions, providing detailed product recommendations, and offering multimedia content such as videos and live streams. The tool is particularly popular during shopping festivals such as 11.11, where it helps users find the best deals and make informed purchasing decisions.AI tools generate product descriptions and marketing content based on popular keywords and consumer insights (Zeng, 2023). This automation not only saves time, but also increases product visibility and conversion rates.

AI innovations played a crucial role in mega shopping events such as the 11.11 Global Shopping Festival, where Taobao's AI tools were used more than 1.5 billion times, helping the company earn about $450 billion (Rashidin &Gang, 2021). The platform's focus on AI-driven innovations not only enhances the consumer experience, but also significantly improves the operational efficiency of merchants, enabling them to thrive in the highly competitive Chinese e-commerce market