Building Trust in a Digital Age: How Ethical AI Transforms Customer Experience and Brand Loyalty

Building Trust in a Digital Age: How Ethical AI Transforms Customer Experience and Brand Loyalty

The Research objects focus on the following construct :
1. Ethical AI
2. Customer Experience
3. Brand Loyalty

This study investigates the influence of Ethical Artificial Intelligence (Ethical AI) on Customer Experience and Brand Loyalty among e-commerce users in Indonesia. With the rapid integration of AI technologies into digital consumer platforms, ethical considerations have become increasingly relevant in shaping user trust and engagement. This research adopts a quantitative survey approach, targeting a population of approximately 65.65 million Indonesian e-commerce users. From this population, 402 respondents were selected, representing a diverse range of users across various platforms.
To analyze the data, the study employed Partial Least Squares Structural Equation Modeling (PLS-SEM), focusing on two primary phases: the measurement model and the structural model. The results reveal that Ethical AI significantly and positively impacts both Customer Experience and Brand Loyalty. Furthermore, Customer Experience also shows a substantial effect on Brand Loyalty, indicating its mediating potential in the relationship between Ethical AI and long-term customer commitment. These findings highlight the strategic importance of implementing ethical principles in AI systems as a means to enhance user experience and foster brand loyalty in the competitive e-commerce landscape.