Authors :
Mohammad Waled Kaled Al-Dalaeen; Dr. K. S. Lakshmi
Volume/Issue :
Volume 10 - 2025, Issue 12 - December
Google Scholar :
https://tinyurl.com/367nph8p
Scribd :
https://tinyurl.com/5yk7n3tj
DOI :
https://doi.org/10.38124/ijisrt/25dec933
Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.
Note : Google Scholar may take 30 to 40 days to display the article.
Abstract :
The widespread adoption of artificial intelligence (AI) has radically changed the manner in which customers
interact within e-commerce settings, especially in the up-and-coming digital markets. The present research is an empirical
investigation of how the adoption of AI affects the level of customer engagement in the e-commerce firms of India. The
conceptualization of the research is based on the Dynamic Capabilities Theory, according to which AI is viewed as a strategic
digital capability that can make firms sense customer behavior, capture the opportunities of engagement, and reorganize
digital interaction processes. The data under analysis is secondary panel data based on the annual reports and corporate
disclosures of five large Indian e-commerce companies, during the years 2018-2023 using a quantitative research design. The
study employs the method of panel regression to establish the impact of AI adoption on four important engagement
measures, which include customer engagement rates, click-through rates, engagement response rates, and conversion rates.
The findings indicate that artificial intelligence influences all the dimensions of engagement statistically and positively. In
particular, the adoption of AI is being demonstrated to increase customer responsiveness, enhancing the stimulation of more
interactions, boosting click-through behavior, and enhancing conversion. The validity of the estimated models and the
reliability of the empirical findings are verified by the diagnostic and robustness tests. The study makes a contribution to
the literature because it fills a big gap in the empirical research on the topic of AI-enabled customer engagement, especially
in the framework of the emergent e-commerce markets.
Keywords :
AI, Sales Performance, E-Commerce, Customer Engagement, Click-Through Rates, Conversion Rates, E-Commerce, India.
References :
- Ahmed, A. A. A. (2009). Compliance of financial disclosure in corporate annual reports of banking sector in Bangladesh University of Rajshahi].
- Ahmed, K., & Joshi, V. (2024). E-Commerce expansion in Indian retail: a strategic analysis of market penetration and competitive dynamics. Frontiers in Management Science, 3(1), 12-20. https://doi.org/10.56397/FMS.2024.02.03
- Alasuutari, P., Brannen, J., & Bickman, L. (2008). The SAGE Handbook of Social Research Methods. Sage. http://digital.casalini.it/9781446206577
- Almheiri, H. M., Ahmad, S. Z., Khalid, K., & Ngah, A. H. (2025). Examining the impact of AI capability on dynamic capabilities, organizational creativity and organization performance in public organizations. Journal of Systems and Information Technology, 27(1), 1-20. https://doi.org/10.1108/JSIT-10-2022-0239
- Ansari, I., Azim, K. S., Bhujel, K., Panchal, S. S., & Ahirrao, Y. S. (2025). Fintech innovation and IT infrastructure: Business implications for financial inclusion and digital payment systems. Emerging Frontiers Library for The American Journal of Engineering and Technology, 7(09), 49-73.
- Araujo, T. (2018). Living up to the chatbot hype: The influence of anthropomorphic design cues and communicative agency framing on conversational agent and company perceptions. Computers in human behavior, 85, 183-189. https://doi.org/10.1016/j.chb.2018.03.051
- Bleier, A., De Keyser, A., & Verleye, K. (2018). Customer Engagement Through Personalization and Customization. In R. W. Palmatier, V. Kumar, & C. M. Harmeling (Eds.), Customer Engagement Marketing (pp. 75-94). Springer International Publishing. https://doi.org/10.1007/978-3-319-61985-9_4
- Brodie, R. J., Lim, W. M., Gandhi, S., & Manrai, A. K. (2025). Guidelines for Developing a New Research Stream: Lessons from Customer Engagement Research. Journal of Global Marketing, 38(1), 1-8. https://doi.org/10.1080/08911762.2025.2441543
- Calder, B. J., Malthouse, E. C., & Schaedel, U. (2009). An experimental study of the relationship between online engagement and advertising effectiveness. Journal of interactive marketing, 23(4), 321-331. https://doi.org/10.1016/j.intmar.2009.07.002
- Campbell, S., Greenwood, M., Prior, S., Shearer, T., Walkem, K., Young, S., Bywaters, D., & Walker, K. (2020). Purposive sampling: complex or simple? Research case examples. Journal of Research in Nursing, 25(8), 652-661. https://doi.org/10.1177/1744987120927206
- Davenport, T., Guha, A., Grewal, D., & Bressgott, T. (2020). How AI will change the future of marketing. Journal of the Academy of Marketing Science, 48(1), 24-42. https://doi.org/10.1007/s11747-019-00696-0
- De Haan, E., Wiesel, T., & Pauwels, K. (2016). The effectiveness of different forms of online advertising for purchase conversion in a multiple-channel attribution framework. International journal of research in marketing, 33(3), 491-507. https://doi.org/10.1016/j.ijresmar.2015.12.001
- Følstad, A., & Brandtzæg, P. B. (2017). Chatbots and the new world of HCI. interactions, 24(4), 38–42. https://doi.org/10.1145/3085558
- Gupta, Y., & Khan, F. M. (2024). Role of AI in customer engagement: a systematic review and future research directions. Journal of Modelling in Management, 19(5), 1535-1565. https://doi.org/10.1108/JM2-01-2023-0016
- Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., & Winter, S. G. (2007). Dynamic capabilities: Understanding strategic change in organizations. In: Blackwell.
- Huang, M.-H., & Rust, R. T. (2021). A strategic framework for AI in marketing. Journal of the Academy of Marketing Science, 49(1), 30-50. https://doi.org/10.1007/s11747-020-00749-9
- Jain, V., Wadhwani, K., & Eastman, J. K. (2024). AI consumer behavior: A hybrid review and research agenda. Journal of Consumer Behaviour, 23(2), 676-697. https://doi.org/https://doi.org/10.1002/cb.2233
- Jannach, D., Zanker, M., Felfernig, A., & Friedrich, G. (2010). Recommender Systems: An Introduction. Cambridge University Press.
- Kim, S., Oh, P., & Lee, J. (2024). Algorithmic gender bias: investigating perceptions of discrimination in automated decision-making. Behaviour & Information Technology, 43(16), 4208-4221. https://doi.org/10.1080/0144929X.2024.2306484
- Kumar, V., Aksoy, L., Donkers, B., Venkatesan, R., Wiesel, T., & Tillmanns, S. (2010). Undervalued or overvalued customers: Capturing total customer engagement value. Journal of service research, 13(3), 297-310. https://doi.org/10.1177/1094670510375602
- Lambrecht, A., & Tucker, C. (2019). Algorithmic bias? An empirical study of apparent gender-based discrimination in the display of STEM career ads. Management science, 65(7), 2966-2981. https://doi.org/10.2139/ssrn.2852260
- Odoom, R. (2025). Digital content marketing and consumer brand engagement on social media- do influencers’ brand content moderate the relationship? Journal of Marketing Communications, 31(4), 491-514. https://doi.org/10.1080/13527266.2023.2249013
- Saini, N., & Kharb, R. (2025). Empowering sustainable development through digital transformation: insights from digital India. Journal of Asia Business Studies, 19(3), 606-634. https://doi.org/10.1108/jabs-07-2024-0408
- Sharma, S., & Sharma, A. (2024). Insights into customer engagement in a mobile app context: review and research agenda. Cogent Business & Management, 11(1), 1-17. https://doi.org/10.1080/23311975.2024.2382922
- Suraña‐Sánchez, C., & Aramendia‐Muneta, M. E. (2024). Impact of AI on customer engagement and advertising engagement: A review and future research agenda. International Journal of Consumer Studies, 48(2), 1-22. https://doi.org/10.1111/ijcs.13027
- Teece, D. J. (2018). Dynamic capabilities as (workable) management systems theory. Journal of Management & Organization, 24(3), 359-368.
- Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
- Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889-901. https://doi.org/10.1016/j.jbusres.2019.09.022
- Verma, C., Vijayalakshmi, P., Chaturvedi, N., Umesh, U., Rai, A., & Ahmad, A. Y. B. (2025). AI in Marketing Management: Enhancing Customer Engagement and Personalization. 2025 International Conference on Pervasive Computational Technologies (ICPCT),
- Wedel, M., & Kannan, P. K. (2016). Marketing Analytics for Data-Rich Environments. Journal of Marketing, 80(6), 97-121. https://doi.org/10.1509/jm.15.0413
The widespread adoption of artificial intelligence (AI) has radically changed the manner in which customers
interact within e-commerce settings, especially in the up-and-coming digital markets. The present research is an empirical
investigation of how the adoption of AI affects the level of customer engagement in the e-commerce firms of India. The
conceptualization of the research is based on the Dynamic Capabilities Theory, according to which AI is viewed as a strategic
digital capability that can make firms sense customer behavior, capture the opportunities of engagement, and reorganize
digital interaction processes. The data under analysis is secondary panel data based on the annual reports and corporate
disclosures of five large Indian e-commerce companies, during the years 2018-2023 using a quantitative research design. The
study employs the method of panel regression to establish the impact of AI adoption on four important engagement
measures, which include customer engagement rates, click-through rates, engagement response rates, and conversion rates.
The findings indicate that artificial intelligence influences all the dimensions of engagement statistically and positively. In
particular, the adoption of AI is being demonstrated to increase customer responsiveness, enhancing the stimulation of more
interactions, boosting click-through behavior, and enhancing conversion. The validity of the estimated models and the
reliability of the empirical findings are verified by the diagnostic and robustness tests. The study makes a contribution to
the literature because it fills a big gap in the empirical research on the topic of AI-enabled customer engagement, especially
in the framework of the emergent e-commerce markets.
Keywords :
AI, Sales Performance, E-Commerce, Customer Engagement, Click-Through Rates, Conversion Rates, E-Commerce, India.