In the digital economy, businesses are increasingly adopting AI to deeply analyze consumer behavior, create personalized content, automate communications, and improve the effectiveness of advertising campaigns. The publication analyzes how personalization based on artificial intelligence affects the growth of customer engagement, the increase in conversion rates, and the overall improvement of the effectiveness of marketing strategies. At the same time, with the development of technology, consumer expectations for an individual approach are growing, which makes personalization a key factor in increasing loyalty and the effectiveness of marketing campaigns. The work reveals a number of ethical and social issues related to data privacy and user trust when actively using AI in personalization. Consumers are increasingly concerned about how companies collect, analyze, and use their personal information. This creates new challenges for businesses, which must find a balance between technological capabilities and maintaining ethical standards. Thus, researching current trends, personalization tools, and trust issues in the context of AI is extremely relevant for both marketers and researchers in the field of digital marketing.