Significance of Explainable Artificial Intelligence (XAI) in Marketing

Abstract

Explainable artificial intelligence (XAI) is increasingly crucial due to its extremely important role in modern marketing, as it advances predictive analytics of consumer behavior and analysis of the purchase decision-making process. This paper examines the importance of XAI in marketing, emphasizing its role in improving the effectiveness and efficiency of marketing strategies. By examining the evolution of AI in marketing and the challenges posed by opaque algorithms, this study highlights the transformative potential of XAI in bridging the gap between marketers and consumers. In addition, ethical issues related to the application of XAI are discussed, emphasizing the imperative of conscientious application in order to maintain privacy and consumer trust. Furthermore, possible directions for the use of XAI are explored, with the aim of driving marketing practices in a data-dominated era. This paper highlights the key role of XAI in shaping future trends in marketing research and its implications for businesses operating in a dynamic market environment.