This study examines how AI affects consumer choices in smart homes. This research determines how AI-supported technologies such as voice-controlled digital assistants, dynamic pricing models, and personalized recommendations significantly affect consumer tastes, behaviors, and purchasing decisions through the use of secondary data sources. Customers’ interactions with goods and services are personal and pragmatic as artificial intelligence is progressively included in smart homes. The study claims, however, that artificial intelligence has a two-edged effect on consumer decision-making. Two such areas where AI can enhance customer experience by improving interactions and decision-making processes are through personalization and optimization. This, however, gives rise to some critical ethical issues concerning algorithmic bias, privacy, and data security. As technology matures, it is essential to promote responsible AI practices, given its increasing ubiquity in daily life. According to the study findings, for instance, organizations must overcome these challenges if they are to preserve customer trust and ensure that artificial intelligence (AI) will ultimately enhance customer relationships. Reading through many kinds of research, company reports, and scholarly works on AI applications in consumer decision-making gives one a view of its current and potential future applications. Results underline that ethics matter when designing transparent AI systems in order to enhance customer loyalty and trust.