The ever-increasing adoption of artificial intelligence (AI) in the marketing field has strongly transformed the concept of identifying, targeting, and engaging the consumer. Although AI-driven personalization, relevance, and efficiency are improved, AI also creates psychological pressures, which nobody has been able to adequately investigate (Davenport et al., 2020; Zuboff, 2019; Acquisti et al., 2015). The paper will consider the concept of identity fatigue brought about by AI marketing, which can be described as the manifestation of cognitive and emotional burnout caused by constant algorithmic profiling, prediction, and identity reinforcement that consumers experience. The paper uses self-concept theory, cognitive load theory, and digital surveillance theory in conceptualizing that AI-based hyper-personalization and reduced consumer well-being are connected (Aaker, 1999; Deci & Ryan, 2000; Iyenger & Lepper, 2000). Across a thematic review of interdisciplinary sources, the study demonstrates how continual use of data-driven targeting may decrease perceived autonomy, increase digital stress, and create emotional detachment of brands. The analysis has also established transparency, perceived control, and ethical design of AI to be the essential mediating variables that can alleviate identity fatigue. The article is an addition to the literature on marketing and consumer welfare as it presents identity fatigue as a fundamental process that clarifies why consumers respond negatively to AI marketing. In practice, it underlines the necessity of the human-oriented and ethically-based AI approaches that should be characterized by the equal importance of personalization gains and the future consumer psychological welfare and durable brand relations.