The Influence of AI-Powered Consumer Analytics on Sustainable Product Purchase Decisions Among Generation Z Consumers in Hyderabad: An Empirical Study

Abstract

Artificial intelligence (AI) now shapes what young consumers see, compare and buy on digital platforms. This study examines how AI-powered consumer analytics, expressed through personalised recommendations and targeted advertising, relate to the sustainable product purchase decisions of Generation Z consumers in Hyderabad. Primary data were gathered from 17 respondents through a structured 30-item questionnaire on a five-point Likert scale and were supported with secondary evidence drawn from published academic studies and industry surveys. The analysis applied descriptive statistics, Cronbach's alpha, correlation, a one-sample t-test, multiple regression and a Kruskal-Wallis test. Respondents reported high exposure to AI-based personalisation (mean 3.72), a favourable orientation towards sustainability (mean 3.78) and an above-neutral influence of AI analytics on sustainable purchase decisions (mean 3.65; t(16) = 3.45, p = .003). Sustainability orientation was strongly associated with AI influence (r = 0.77, p < .001), whereas exposure to AI analytics showed a positive but statistically insignificant association (r = 0.27, p = .288). The evidence suggests that AI analytics act as an amplifier of existing environmental values rather than a substitute for them. Implications for platforms, brands and educators are discussed, together with the limits imposed by a small, student-dominated sample.