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Purpose: The present study examines the dual-edged role of Artificial Intelligence (AI) in influencer marketing, with a focus on the Indian digital ecosystem. It seeks to understand how AI tools enhance campaign precision and ROI while simultaneously raising ethical concerns related to authenticity, data privacy, algorithmic bias, and deepfake misuse. Design/Methodology/Approach: The study adopts a qualitative approach using literature review and stakeholder interviews involving influencers, marketers, and consumers. Case studies of brands such as Nykaa, Mamaearth, and H&M are analyzed to demonstrate the application of AIbased tools like sentiment analysis, chatbot-enabled engagement, and influencer platforms (e.g., Qoruz, HypeAuditor) in campaign planning and execution. Findings: The findings reveal that while AI-driven influencer marketing enables greater personalization, efficiency, and campaign performance, it also tests ethical boundaries concerning influencer authenticity and consumer trust. The study proposes a Responsible AI Framework comprising transparency in influencer disclosures, ethical AI audits, and human oversight in campaign decisions. Research Limitations: The study is limited to qualitative insights from selected Indian brands and stakeholders, which may restrict generalizability across diverse industries or geographies. Further research could extend the framework by incorporating quantitative measures of consumer trust and AI adoption across global markets. Managerial Implications: For practitioners, the study underscores the need to balance efficiency with ethics in AI-enabled campaigns. Managers must adopt responsible AI practices to safeguard consumer trust, particularly among Gen Z audiences, who are highly tech-savvy and socially conscious. Originality/Value: The study contributes to the limited literature on AI in influencer marketing within India, offering a practical ethical framework that integrates technology adoption with value-based digital trust. It highlights how brands can sustain long-term consumer engagement by aligning AI innovations with ethical considerations.
Keywords
Artificial Intelligence, Influencer Marketing, Ethical Challenges, Digital Branding
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