Chapter 7: From Businesses-Centric to Consumers-Centric: A Shift of Power in AI-Driven Social Media

Digital technology has undergone a tremendous transition due to Artificial Intelligence (AI), significantly impacting purchasing decisions. Social media networks, where businesses traditionally used to shape consumer behaviour, are experiencing a seismic transition today. Users use social media platforms with AI-powered tools to influence one another, thereby taking control away from businesses. This chapter highlights the use of consumer-generated data to influence consumer behaviour. Social media networks allow users to exchange information about essential new products, influencing consumer buying behaviour. As a result, social awareness has assumed a crucial role, with consumers increasingly depending on online resources posted on social media to guide their decisions. AI technologies like chatbots and virtual assistants enhance this process by offering various types of support on online platforms. Interestingly, consumer-driven word of line (WOL) influences more than typical word of mouth (WOM) recommendations. Online discussions among members of virtual communities significantly influence consumer behaviour. This chapter also explores how the dynamics of online communities affect consumers' decision-making. In conclusion, AI-powered personalisation in marketing has the potential to significantly increase brand loyalty, conversion rates and consumer engagement.