Artificial Intelligence as a Predictor of Consumer Purchase Behaviour: Empirical Evidence from Urban Indian Digital Consumers

Abstract

Purpose – This study investigates the extent to which Artificial Intelligence (AI) mechanisms shape purchase decisions among digitally active consumers in urban India. Three AI-related constructs are examined: general awareness of AI capabilities, the perceived relevance of personalised recommendations, and the accuracy with which AI systems anticipate individual needs.

Methodology – A structured questionnaire was administered to 100 respondents aged 18–35. Chi-square tests (α = 0.05) were employed to assess the statistical relationship between each AI construct and reported purchase behaviour.

Findings – Awareness of AI in isolation does not significantly alter purchasing outcomes (χ² = 4.120, p = 0.26). By contrast, contextually relevant personalisation (χ² = 13.204, p = 0.004) and high predictive accuracy (χ² = 14.015, p = 0.009) each exert a statistically significant influence on purchase intent.