THE IMPACT OF ETHICAL TRANSPARENCY ON CONSUMER TRUST IN AI-DRIVEN MARKETING: A CONCEPTUAL FRAMEWORK

Abstract

This conceptual paper explores the role of ethical transparency in AI marketing and its impact on consumer trust. As AI technologies become integral to marketing strategies, transparent communication about AI practices is crucial for building consumer trust. This paper proposes a framework examining how ethical transparency in AI marketing influences consumer trust. By analyzing existing literature, the paper highlights the importance of disclosing AI usage, ensuring data privacy and security, maintaining algorithmic fairness, and adhering to responsible AI practices. The findings suggest that ethical transparency in AI marketing enhances consumer trust, leading to increased consumer loyalty and positive brand perception. However, implementing ethical transparency presents challenges, including addressing algorithmic bias, ensuring data privacy, and achieving transparency in complex AI systems. This framework provides valuable insights for marketers and businesses aiming to build trust-based relationships with consumers through ethical AI marketing practices.