Trust the Algorithm : How AI-Powered Personalization Shapes Consumer Decisions in Social Commerce

The study looks into how user engagement, purchasing behavior and purchasing decisions within the social commerce platforms of Instagram and TikTok are affected by AI-personalization recommendation systems. AI algorithms have revolutionized the digital marketing industry by offering personalized recommendations, but it is little known about how these algorithms work in worldwide marketplaces platforms can affect the users. The research employed quantitative methods to obtain data from 101 Indonesian social commerce users who then underwent SEM analysis through SmartPLS 4.0. The research shows that AI algorithms by themselves do not lead to increased purchase intentions because users develop positive attitudes toward AI and experience immersive flow which strongly influences their buying choices. The research demonstrates that consumer trust and psychological involvement produce stronger effects on purchasing behavior than algorithmic accuracy does. The research adds new knowledge to consumer psychology and AI adoption studies by demonstrating how flow experience acts as a mediator while applying these findings to TikTok and Instagram social commerce platforms. Organizations need to develop trustworthy AI platforms which deliver immersive user interactions to achieve successful conversion of personalized suggestions into actual sales.