GENERATIVE ARTIFICIAL INTELLIGENCE PERSONALIZATION, CONSUMER TRUST, AND PURCHASE INTENTIONS IN PAKISTAN’S DIGITAL COMMERCE ECOSYSTEM

Abstract

Generative Artificial Intelligence (GenAI) is transforming digital commerce through personalized recommendations, generated promotional content, conversational assistance, and adaptive customer interactions. This study examines the effects of GenAI personalization on consumer trust and purchase intention and tests the mediating role of consumer trust among Pakistani digital-commerce consumers. A quantitative, explanatory, cross-sectional design was used with 384 consumers who had experienced AI-enabled personalization. Data were collected through a structured questionnaire and analyzed using descriptive statistics, reliability and validity assessment, correlation analysis, and Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that GenAI personalization positively affects consumer trust and purchase intention, while consumer trust also positively affects purchase intention. Trust significantly mediates the relationship between GenAI personalization and purchase intention, with the direct effect remaining significant, indicating partial mediation. The findings support the Stimulus–Organism–Response (S-O-R) framework and emphasize that the commercial value of GenAI personalization depends not only on relevance and convenience but also on transparency, reliability, privacy protection, and consumer control. The study provides implications for digital-commerce firms, policymakers, and researchers seeking to develop trustworthy and consumer-centered GenAI applications in Pakistan.