2025, Vol. 7, Issue 2, Part E

author(s)
Ashwani Mishra

abstract
This article examines the transformative impact of Artificial Intelligence (AI) on modern marketing strategies and the significant ethical challenges that arise from its deployment. As businesses increasingly leverage AI for hyper-personalization, predictive analytics, and automated customer engagement, they gain unprecedented capabilities to understand and influence consumer behavior. We explore the core AI technologies driving this revolution, including machine learning algorithms for audience segmentation, natural language processing for chatbots, and generative AI for dynamic content creation. However, the immense power of these tools introduces a complex ethical landscape. This article critically analyzes four primary areas of concern: (1) Data Privacy and Surveillance, focusing on the extensive collection of personal data, often without transparent consent; (2) Algorithmic Bias and Discrimination, where biased training data leads to the reinforcement of societal stereotypes and inequitable targeting; (3) Psychological Manipulation and Vulnerability Exploitation, discussing how AI can identify and target consumer vulnerabilities to drive purchasing decisions beyond ethical persuasion; and (4) Lack of Transparency and Accountability, addressing the "black box" problem where the decision-making processes of complex AI models are opaque to both marketers and consumers. Finally, the article proposes a framework for navigating these challenges, advocating for a multi-stakeholder approach that combines robust regulatory frameworks like GDPR, the development and adoption of Explainable AI (XAI), the establishment of internal corporate ethics boards, and a renewed emphasis on consumer digital literacy. The central argument is that the long-term sustainability of AI in marketing depends not on its technical prowess alone, but on a foundational commitment to ethical principles that build and maintain consumer trust.