This study explores the transformative role of artificial intelligence (AI) in digital marketing, focusing on its impact on consumer behaviour and personalisation. AI-driven technologies such as machine learning and natural language processing enhance marketers’ ability to analyse vast consumer data, predict preferences and deliver targeted campaigns. These advancements improve customer engagement, satisfaction and brand loyalty. However, the integration of AI in marketing presents ethical challenges, including data privacy concerns, algorithmic biases and transparency issues. The study highlights the need for regulatory frameworks to ensure responsible AI use. Additionally, emerging trends indicate AI’s growing influence in automating marketing processes, enhancing decision-making and optimising customer experiences. Despite challenges, AI continues to reshape digital marketing by enabling highly personalised interactions and predictive analytics. This research underscores the importance of balancing technological advancements with ethical considerations to foster consumer trust and sustainable AI-driven marketing strategies.