The impact of artificial intelligence on the future of digital advertising

Abstract

This thesis examined how artificial intelligence may shape the future of digital advertising. It explored the current applications of AI in advertising, consumer familiarity with AI-driven tools, user behaviour, and associated ethical concerns. The study combined a review of existing literature with primary data collected through an online consumer survey. The findings indicate that AI tools are becoming increasingly integrated into everyday digital environments, contributing to both greater efficiency at daily tasks and more personalized advertising experiences. However, the study also revealed that many consumers are worried about data privacy and whether current regulations are strong enough to protect them. Examining these trends and concerns, the research contributes to an understanding of how AI is likely to transform digital advertising. This includes the rise of hyper-personalization, automated content creation, and evolving consumer expectations. The research concludes by highlighting the necessity for greater transparency in how personal data is managed in digital advertising and the importance of prioritizing user trust as AI becomes more deeply integrated into both digital marketing practices and consumers' daily lives.