This paper aims to examine AI’s transformative role in marketing personalization, focusing on its potential to create tailored consumer experiences and enhance engagement. Indeed, companies can leverage technologies such as machine learning, predictive analytics, and recommendation systems to analyze large datasets and offer tailored marketing experiences to their customers which inevitably improves their satisfaction (Zaman, 2022). Furthermore, companies can create data-driven strategies with remarkable precision using AI’s ability to predict consumer behavior and preferences (Ma, 2023). However, businesses may face certain challenges while integrating AI into marketing strategies such as technical difficulties, data privacy concerns, and the risk of over-reliance on automation (Ljepava, 2022). Furthermore, this study also explores the theoretical and practical implications of AI integration in marketing through a comprehensive literature review. The findings of this review insinuate that organizations must invest in robust data management systems, as well as an adaptable infrastructure. They must also implement a hybrid approach that blends AI-driven automation with human creativity, and develop a culture of innovation within to optimize AI’s benefits (Chintalapati & Pandey, 2021). Finally, the study highlights that even though AI integration is essential for enhancing customer engagement and business growth, it also demands strategic investments and an extremely enthusiastic approach to technological evolution.