Artificial Intelligence (AI) has become a strategic driver of digital marketing transformation by enabling organizations to deliver personalized customer experiences and improve business performance. This study aims to examine the role of AI-driven marketing strategies in enhancing consumer engagement and sustainable business competitiveness in digital markets. The research employs a qualitative library research approach using content analysis to synthesize evidence from scholarly books, peer-reviewed journals, research reports, and other relevant scientific publications. The findings reveal that AI technologies, including predictive analytics, machine learning, recommendation systems, conversational AI, and marketing automation, significantly strengthen consumer engagement through cognitive, emotional, and behavioral interactions. Furthermore, organizations that strategically integrate AI with customer-centric marketing practices achieve greater operational efficiency, improved decision-making, stronger customer loyalty, and long-term competitive advantage. However, successful AI implementation depends on organizational capabilities, ethical AI governance, data quality, and digital readiness. This study contributes to the existing literature by providing an integrated perspective that connects AI-driven marketing strategies, consumer engagement, and sustainable business competitiveness within the evolving digital economy.
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