The Paradox of Personalization: How Perceived Control Influences Trust and Purchase Intent

Abstract

The rapid advancement of artificial intelligence (AI) and algorithmic systems has revolutionized the personalization of digital experiences, particularly in e-commerce, online advertising, and consumer interaction. This compilation of literature investigates the complex interplay between personalization, consumer trust, privacy concerns, and decision-making outcomes. Central to the discourse is the personalization–privacy paradox, which encapsulates the consumer's desire for tailored experiences while simultaneously harboring apprehensions about data misuse and algorithmic opacity. The reviewed studies highlight the role of transparency, ethical considerations, and privacy calculus models in shaping consumer attitudes and behaviors. Furthermore, the insights explore how different demographic groups, such as Generation Z, respond to AI-enabled personalization across contexts including retail, health, and social media. Overall, this body of work underscores the need for balancing technological innovation with user-centric privacy protections to foster trust and engagement in digital ecosystems.