2025-03-132025-03-132024-12-18https://repository.tcu.edu/handle/116099117/66926Digital Marketing Evolution: Digital marketing has shifted from traditional fixed-cost strategies to dynamic, cost-efficient approaches. This evolution emphasizes personalization and adaptability, driven by metrics like Customer Acquisition Cost (CAC). Gen AI Capabilities in Marketing: Generative AI tools, such as GPT-4 and DALL-E, enable businesses to craft personalized, scalable content. These tools enhance marketing by optimizing customer segmentation, content creation, and predictive analytics. Consumer Engagement: Gen AI improves engagement by tailoring marketing messages and recommendations to individual preferences. Companies with agile systems can deliver real-time personalized content, fostering stronger consumer connections. Conversion Rate Enhancement: Through hyper-personalized content, Gen AI boosts conversion rates by aligning marketing efforts with specific consumer needs. Tools like Sephora?s Virtual Artist demonstrate how personalized experiences increase sales. Case Studies: Amazon: Utilizes Gen AI for dynamic recommendations, product descriptions, and video ads, leading to increased customer interaction and sales. Sephora: Leverages Gen AI for virtual try-ons and tailored recommendations, significantly boosting conversion rates and customer loyalty. Key Metrics for Success: The research identifies conversion rates and engagement levels as critical indicators of Gen AI's effectiveness in digital marketing. Strategic Recommendations: Businesses should adopt Gen AI-powered tools for dynamic content generation, real-time customer interactions, and enhanced personalization to maintain competitiveness and improve customer loyalty.AI in Digital Marketing