Luxembourg Leads New Research into the Impact of Artificial Intelligence on Consumer Behaviour

April 2025

At Termax International Institute of Technology and Arts in Luxembourg, an interdisciplinary research team recently completed a pioneering study examining how Artificial Intelligence (AI) technologies are reshaping consumer behaviour and decision-making processes within European markets. The comprehensive study, led by the institute’s Faculty of Technology and Business Innovation, integrated advanced machine learning methods with behavioural economics to explore this rapidly evolving area.

The research, entitled Artificial Intelligence and Consumer Decision-making: Understanding the New Paradigm, gathered and analysed data from over 5,000 European consumers across multiple countries, tracking interactions with AI-driven recommendation systems used in e-commerce platforms, digital banking, and personalised marketing applications.

Key findings from the study indicate that AI technologies significantly influence purchasing patterns, enhancing customer engagement and optimising sales through highly personalised recommendations. Specifically, the research demonstrated that consumers exposed to AI-driven personalised marketing were 34% more likely to engage in repeat purchases compared to traditional advertising approaches. However, the study also identified critical ethical considerations, highlighting concerns around data privacy, consumer autonomy, and transparency.

Dr Zoltán Pavliček, Chair of the Computer Science Department and co-author of the study, emphasised, “Our research reveals a clear transformation in the way consumers interact with digital platforms powered by AI. The implications for businesses are substantial—companies now have unprecedented opportunities to enhance customer experience, but they must also navigate carefully to respect consumer privacy and maintain trust.”

The study further outlines strategic guidelines for European businesses aiming to integrate AI effectively into their marketing and sales strategies. Among these recommendations are stronger transparency practices regarding how consumer data is utilised, improved communication to consumers regarding the role of AI in influencing choices, and responsible governance mechanisms within businesses to ensure ethical use of data.

Termax International Institute of Technology and Arts has positioned itself at the forefront of digital innovation research, blending technological advancements with robust ethical frameworks. This research project reinforces Luxembourg’s growing status as a European hub for responsible digital innovation, highlighting the critical balance between technological advancement and consumer protection in the digital economy.

Moving forward, the institute will expand its research by partnering with leading European firms to test the study’s recommendations in real-world commercial scenarios, further bridging the gap between academia and industry practice.