ABSTRACT Date: 2024 Level: Bachelor Thesis in Business Administration, 15 cr Institution: School of Business, Society and Engineering, Mälardalen University Authors: Tatiana Bernard, Alexia; Parvin, Maryam; Ram, Mahabad Title: Beyond the Click: Unveiling the Influence of AI Personalization on E-commerce Impulse Buys Supervisor: Emre Yildiz Keywords: AI personalized recommendations, impulsive buying behavior, perceived value, perceived scarcity, perceived positive emotions. Research question: How does AI-powered personalized product recommendations influence impulsive buying behavior in e-commerce, potentially mediated by underlying psychological mechanisms? Purpose: The purpose of this study is to examine the link between AI-powered personalized product recommendations and consumers’ impulsive buying on e-commerce platforms. The research explores how these personalized recommendations might influence customers towards impulsive purchases through perceived value, scarcity, and positive emotions as mediating factors. Method: This study utilized a quantitative research methodology, employing online surveys to collect data from active online shoppers. To ensure a comprehensive sample, both convenience and purposive sampling techniques were implemented, aiming to represent a broad spectrum of online shopping behaviors. Conclusion: This study reveals that AI-powered personalized product recommendations significantly influence impulsive buying behaviors on e-commerce platforms. By examining the mediating effects of perceived value, scarcity, and positive emotions, the research highlights how personalized recommendations can drive impulsive purchases. The findings underscore the importance of sophisticated recommendation systems in enhancing consumer engagement and satisfaction while raising important ethical considerations about consumer manipulation and long-term satisfaction. This study provides valuable insights for businesses looking to balance effective marketing strategies with ethical consumer practices.