Abstract

Artificial intelligence (AI)-driven personalisation is reshaping digital marketing by enabling hyper-targeted experiences, but it also intensifies privacy concerns and ethical dilemmas. This systematic review examines the interaction between AI-enabled marketing and consumer trust, algorithmic transparency, and ethical governance, drawing on 41 peer-reviewed studies published between 2014 and 2025. The review employs thematic synthesis to extract five key thematic domains: the trust-personalisation paradox, explainability in AI systems, ethical governance, consumer empowerment, and future research trajectories. Findings reveal that although AI personalisation enhances engagement and perceived relevance, it often lacks transparent mechanisms and clear ethical boundaries, thereby eroding user trust. Empirical evidence suggests that permission-based targeting, explainable AI, and consumer-controlled data frameworks are emerging as best practices, although they are rarely adopted systematically. Gaps remain in the operationalisation of ethical AI, particularly across cultural contexts and long-term behavioural outcomes. The review concludes that ethical AI marketing must prioritise user empowerment, institutionalise transparency, and position ethical governance as a strategic asset in digital engagement.

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