Advances in Consumer Research
Issue 4 : 4086-4095
Research Article
Beyond Engagement: AI-Enhanced UX Strategies that Build Loyalty and Conversions
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1
Associate Professor, Marketing, Jaipuria Institute of Management Indore
2
Associate Professor, Computer Science, St. Joseph University, Villupuram
3
Assistant Professor, Commerce, Bundelkhand College Jhansi, Uttar Pradesh
4
Professor, CSE, KLEF Deemed to be University, Guntur
5
VSB College of engineering and technology, Coimbatore
Received
Aug. 1, 2025
Revised
Aug. 15, 2025
Accepted
Sept. 4, 2025
Published
Sept. 20, 2025
Abstract

The entire concept of user experience (UX) in the Internet era is not just about engaging but also about the conversion and customer loyalty. The study explores AI-supported UX designs to provide personalized and predictive and adaptive user software that optimizes the benefits of the business objectives. On a set of 50,000 user sessions, 4 AI schemes were tested, including Collaborative Filtering (CF), Recurrent Neural Networks (RNN), K-Means Clustering, and Gradient Boosting Machines (GBM) to determine their capability to enhance UX metrics. According to experimental results, CF significantly enhanced the conversion rate which had been 6.2 to 12.8, the conversion rate had been further optimized to 14.5 and the index of loyalty had grown to 0.63 positions. K- Means clustering was used to mediate specific intervention leading to high value conversion rates of 15.2% and engagement rates of 22% as compared to GBM predictability and conversion rates of 94 and 16.2. Comparative assessment indicates that multiple AI technique application provides excellent projects in interaction, devotion and conversions than solitary techniques. The paper points to the possibility of changing digital platforms using AI-driven UX which offers personalised interactions in real time, behavioral forecast, and adaptable interface experiences. The findings have practical implications to companies and UX researchers aiming to comprehend the customer experience and achieve the highest value of sustainable business.

Keywords
INTRODUCTION

Digital atmosphere is dynamic and User Experience (UX) is nowadays one of the success factors of any business. The classical approaches to UX by and large revolve around the touchpoints, usability and visual appeal, though they often do not turn out to be effective enough as to ensure enticements of long-term customer retention and spearhead qualitative alterations. Due to increased competition, and due to increased demands by a growing population, organizations seek new ways of developing their understanding of how users behave, and anticipating how they will do the same more accurately [1]. At that, Artificial Intelligence (AI) has the answers to offer, as it potentially extends those means of truly more personal, dynamic, and predictive UX strategies by providing the weapons and methods that may do the trick. Advanced UX relies on predictive analytics, natural language readers, and machine learning to compute all the data regarding a person (user) to identify behavioral tendencies and deliver a personalised experience on-the-fly [2]. It has helped the business to halt with the old type of designs and generic interface and have that of the dynamic interface and which can modify itself online to the details whatever is needed and preferred by the user. The uses of AI that can change the user experience and make the journey more satisfactory and engaging and reduce friction during decision-making include personalized suggestions, intelligent chatbots, personalized content delivery, and interface change depending on the specific behaviour (Page 2019). The purpose of this study is to determine how AI-based UX can build on the outcomes of engagement and achieve loyalty and a greater conversion rate. By evaluating existing frameworks, examples, and how AI can be applied to research cases, the paper will ldefine the applicable AI interventions that can grow customer retention, their feel-like-coming-back intention, and conversion lines. In addition to that, the paper delves into the ethical and practical application of AI use in UX design including liability problems, algorithmic bias, and revealed personalization. It might thus be practical to make contributions to business and UX design, and assist in realizing how AI would not only likely work effectively in UX, but also contribute to building a more meaningful customer relationship, developing a more engaged brand trust, and expanding business sustainably in the digital era.

RELATED WORKS

Artificial Intelligence (AI) has taken its place in the world of user experience (UX) optimization, personalization and customer engagement digital platforms. It has also been recently recorded that AI has been applied to the enhancement of the quality of the interaction and value of loyalty in the e-commerce, in hospitality, and the service sector. As an example, analysis of ChatGPT and persuasive technology (representation of offers using AI) will state that it will be possible to substantially increase the success of upselling within the hotel since the offers are going to be customized based on the needs and preferences of the users [18]. Similarly, AI use of chatbots in customer service exploration turned out to be good concerning customer experience because it introduces added frictionless contextual and immediate response [19]. Digital commerce does not just deal with the subject of the use of AI to personalize messages but is also concerned with the broader question of users and the analysis of their behaviors. The article by Lujan-Salamanca et al. [16] has explored the factors affecting online food shopping in Spain and recognized the need to provide personalized advice and digital channel optimization to increase customer response and satisfaction. Expanding on this, Ūsas et al. [24] also commented on the quality and the user experience in Lithuanian C2C e-commerce sites that restruest on how the interfaces and the responsiveness of the sites directly influence their consumer loyalty, which further elaborates on the potential that AI-based UX methods have to induce the reuse of interfaces by the user. Machine learning has in this case also been applied in supporting collaborative platforms in the context of innovation ecosystems. The second article of Marujo Ângelo et al. [17] depicted the program Foundation Tri-Collab that identified the API of AI to identify and optimize the innovation networks, meaning that the machine learning might generate user-driven design and lively web conditions. Moreover, dynamically changing content and services may be regarded as possibilities of AI in enabling this sphere of research briefly transforming into tailored and context-specific [20] which contributes significantly to human factors and ergonomics in digital systems. As Trstenjak et al. [23] stressed, to ensure the applications of Industry 5.0 can be both useful and efficient, the alignment of AI interventions with human cognitive and behavioral patterns is critical. Similarly, Šumak et al. [21] demonstrated differences in user perception between AI-driven chatbots and traditional tools, underlining that AI technologies can improve qualitative data processing while also reshaping user expectations for interactive systems. Digital innovation performance has been linked to organizational adoption of AI technologies as well. Lin [15] showed that returnee employees implementing digital solutions positively influenced company culture and innovation outcomes, indirectly supporting the need for adaptive AI systems that respond to user behavior and organizational needs. Additional research on visual communication design and big data analytics indicates that AI can analyze complex user interactions and preferences to optimize visual content delivery [22]. Finally, strategic applications of AI in marketing and ERP systems have been found to enhance customer decision-making processes, operational efficiency, and platform competitiveness [25][26].

METHODS AND MATERIALS

Data Collection

The study utilizes anonymized user interaction data collected from e-commerce platforms, mobile applications, and web-based services over a period of six months. The dataset contains 50,000 user sessions and 25 variables, including user demographics, session duration, clickstream data, page visit frequency, purchase history, and response to personalized recommendations [4] Data preprocessing involved cleaning missing values, normalizing numerical variables, encoding categorical data, and splitting into training (70%) and testing (30%) sets. Feature selection was performed using correlation analysis to identify the most relevant attributes affecting user engagement, loyalty, and conversions [5].

 

Algorithms

To analyze and enhance UX, four AI-based algorithms were selected based on their relevance to personalization, behavior prediction, and recommendation systems. Each algorithm is described below:

 

  1. Collaborative Filtering (CF)

Collaborative Filtering is a widely used recommendation algorithm that predicts user preferences based on historical interactions of similar users. In UX design, CF can suggest products, services, or content tailored to individual user interests, thereby increasing engagement and conversions. The algorithm calculates similarity scores between users (user-based) or items (item-based) using metrics like cosine similarity or Pearson correlation [6]. Once similarities are established, it predicts ratings or likelihood of interaction for unseen items and recommends the top-ranked options. CF is effective in uncovering latent preferences and improving personalization without requiring explicit knowledge of item features.

“Input: User-Item Interaction Matrix R

Output: Predicted Ratings P

 

For each user u in Users:

    For each item i not rated by u:

        Find users similar to u based on similarity metric

        Compute predicted rating for i as weighted sum of neighbors’ ratings

        P[u][i] = predicted rating

Return P”

 

Table 1: Sample CF Predicted Ratings (Scale 1-5)

User

Item A

Item B

Item C

Item D

Item E

U1

4.2

3.5

4.8

3.9

4.0

U2

3.8

4.1

3.7

4.5

4.2

U3

4.0

4.2

4.1

3.8

4.4

 

  1. Recurrent Neural Networks (RNN)

Recurrent Neural Networks are meant to deal with the sequential type of data hence they can be effectively used to model user behavior with time. In the context of UX, RNNs have the ability to anticipate user behavior, i.e. the chances of a user clicking, buying or leaving a session, depending on the history of the user-computer interaction. RNNs allow adaptive layout changes and recommendations that are based on time. This algorithm employs the concept of hidden states to maintain the memory of the past inputs and make predictions by use of the activation functions such as sigmoid or tanh after every time step [7]. RNNs are especially applicable in problems in which ongoing and individual adaptation and active usage involvement plans are needed.

 

“Input: Sequence of user interactions X

Output: Predicted next action Y

 

Initialize hidden state h0 = 0

For t = 1 to T:

    ht = activation(Wx*Xt + Wh*ht-1 + b)

    Yt = softmax(Wy*ht + by)

Return YT”

 

Table 2: Sample RNN Prediction Probabilities (Next Action)

User

Click

Purchase

Scroll

Exit

Time on Page (s)

U1

0.35

0.40

0.20

0.05

180

U2

0.25

0.50

0.20

0.05

210

U3

0.40

0.30

0.25

0.05

150

 

  1. K-Means Clustering

K-Means is unsupervised learning algorithm which is used to cluster users as per their behavioural and demographic characteristics. Clustering in UX development aids discovery of user personas that allows customization of content, targeted advertisements, as well as loyalty and customer retention. Division The algorithm repeatedly classifies users with the closest centroid, restances centroids and minimizes intra cluster variance until convergence occurs [8]. K-Means can handle big datasets and offer ideas that can be acted on to develop flexible UX practices depending on different user segments.

 

“Input: User feature set X, number of clusters K

Output: Cluster assignments C

 

Randomly initialize K centroids

Repeat until convergence:

    For each user xi:

        Assign xi to nearest centroid

    For each cluster j:

        Recalculate centroid as mean of assigned points

Return C”

 

  1. Gradient Boosting Machines (GBM)

Gradient Boosting is a supervised ensemble algorithm that builds predictive models sequentially by correcting errors from previous iterations. In UX optimization, GBM can predict conversion likelihood, churn probability, or engagement scores based on multiple user features. It combines weak learners (typically decision trees) to create a robust model with high predictive accuracy [9]. GBM is particularly effective in handling complex, non-linear relationships between user behavior variables and outcome metrics, making it suitable for conversion optimization and loyalty prediction.

 

“Input: Training data X, labels Y, number of iterations M

Output: Final model F

 

Initialize F0 = mean(Y)

For m = 1 to M:

    Compute residuals rm = Y - Fm-1(X)

    Fit a weak learner hm to rm

    Update Fm = Fm-1 + learning_rate * hm

Return FM”

 

RESULTS AND ANALYSIS

  1. Experimental Setup

The experiments were designed to evaluate the effectiveness of AI-enhanced UX strategies in improving customer loyalty, engagement, and conversions. The study utilized a dataset of 50,000 user sessions collected from e-commerce platforms, mobile applications, and web services. The dataset included 25 variables, covering user demographics, session behavior, clickstream data, purchase history, and response to personalized recommendations. Preprocessing involved handling missing data, encoding categorical variables, normalizing numerical features, and splitting the dataset into training (70%) and testing (30%) sets [10].

 

Figure 1: “How AI in CRM Transforms Customer Engagement”

 

The four algorithms implemented were Collaborative Filtering (CF), Recurrent Neural Networks (RNN), K-Means Clustering, and Gradient Boosting Machines (GBM). Performance metrics included:

  • Conversion Rate (CR): Percentage of users completing a desired action such as purchase or subscription.
  • Engagement Score (ES): Composite score calculated from session duration, clicks, and page interactions.
  • Loyalty Index (LI): Frequency of repeat visits and continued interactions.
  • Prediction Accuracy (PA): Correctness of predictions for CF, RNN, and GBM.

 

All experiments were conducted using Python with Scikit-learn, TensorFlow, and Keras on a system with 32GB RAM, Intel i9 CPU, and NVIDIA RTX 4090 GPU.

 

  1. Collaborative Filtering Experiment

Collaborative Filtering was applied to generate personalized recommendations for users. CF calculates similarity scores between users or items and predicts preferences for unseen items.

 

Results:

  • Conversion rate increased from 6.2% (baseline) to 12.8%.
  • Engagement Score improved from 65 to 77, showing enhanced interaction.
  • Prediction accuracy for item ratings reached 87%.

 

Table 1: Collaborative Filtering Performance

Metric

Before CF

After CF

Improvement (%)

Conversion Rate (CR)

6.2%

12.8%

106.5

Engagement Score (ES)

65

77

18.5

Prediction Accuracy

-

87%

-

 

CF significantly improved personalization, leading to higher engagement and conversions.

 

  1. Recurrent Neural Network Experiment

RNNs were used to model sequential user behavior, predicting the next action and dynamically adapting the UX.

Results:

  • Conversion rate increased to 14.5%.
  • Loyalty Index improved from 0.42 to 0.63.
  • Average session duration increased by 25%.
  • Prediction accuracy reached 91%.

 

Table 2: RNN Performance Metrics

Metric

Before RNN

After RNN

Improvement (%)

Conversion Rate (CR)

6.2%

14.5%

133.9

Loyalty Index (LI)

0.42

0.63

50.0

Time on Page (s)

160

200

25.0

Prediction Accuracy

-

91%

-

 

RNNs captured sequential behavior patterns, allowing proactive UX adjustments and dynamic recommendations.

 

  1. K-Means Clustering Experiment

K-Means clustering segmented users into five clusters based on demographics and behavior. Personalized strategies were applied to each cluster [11].

 

Figure 2: “Using Artificial Intelligence Tools to Enhance and Personalize Marketing Efforts”

 

Results:

  • Conversion rates improved from 6.2% to 11.9%.
  • Engagement Score increased by 22% in high-value clusters.
  • Retention improved by 15% across clusters.

 

Table 3: K-Means Clustering User Segment Performance

Cluster

Avg Engagement Score

Conversion Rate (CR)

Retention Rate

C1

80

15.2%

0.72

C2

75

12.1%

0.65

C3

70

10.3%

0.60

C4

68

9.8%

0.58

C5

66

8.5%

0.55

 

Cluster-based personalization enabled better targeting and improved UX outcomes for high-value users.

 

  1. Gradient Boosting Machines Experiment

GBM was applied to predict conversion likelihood and identify users at risk of churn. The predictions informed adaptive UX interventions [12].

 

Results:

  • Conversion rate reached 16.2% among high-likelihood users.
  • Loyalty Index increased by 55%, indicating more repeat interactions.
  • Prediction accuracy was 94%.

 

Table 4: GBM Conversion Prediction Performance

Metric

Baseline

GBM Model

Improvement (%)

Conversion Rate (CR)

6.2%

16.2%

161.3

Loyalty Index (LI)

0.42

0.65

54.8

Prediction Accuracy

78%

94%

20.5

 

GBM demonstrated high predictive accuracy for conversion optimization and effective retention strategies.

 

  1. Comparative Analysis of Algorithms

To evaluate overall performance, all four algorithms were compared using conversion, engagement, and loyalty metrics.

 

Table 5: Comparative Performance of AI-Enhanced UX Algorithms

Algorithm

Conversion Rate (CR)

Engagement Score (ES)

Loyalty Index (LI)

Prediction Accuracy

Collaborative Filtering

12.8%

77

0.55

87%

RNN

14.5%

80

0.63

91%

K-Means Clustering

11.9%

78

0.60

-

Gradient Boosting

16.2%

82

0.65

94%

 

Observations:

  • GBM achieved the highest conversion rate and prediction accuracy, making it highly effective for targeted interventions.
  • RNN excelled at sequential behavior modeling, enhancing loyalty and engagement [13].
  • CF provided immediate improvements in personalization and engagement but had lower overall conversion compared to GBM.
  • K-Means was effective for segment-based strategies, improving retention and targeted UX adaptation [14].

 

Figure 3: “Unlocking Brand Excellence: Harnessing AI Tools for Enhanced Customer Engagement and Innovation”

DISCUSSION OF RESULTS

The experiments demonstrate that AI-enhanced UX strategies significantly outperform traditional approaches that focus solely on engagement [27]. Specifically:

 

Personalized recommendations through CF and RNN increased conversions by 106–133%.

 

Dynamic behavior prediction using RNN and GBM improved loyalty and retention indices by up to 55% [28].

 

Segment-based interventions using K-Means clustering provided actionable insights into user personas, resulting in targeted engagement improvements [29].

 

Figure 4: “Generative AI is Transforming Customer Service”

 

Comparison of algorithm performance indicates that integrating multiple AI approaches can maximize UX benefits. For example, combining GBM for predictive conversion with RNN for sequential behavior modeling and CF for real-time recommendations provides a holistic strategy that simultaneously boosts engagement, loyalty, and conversions [30].

CONCLUSION

The current study indicates that AI-based User Experience (UX) technologies may go much further than conventional engagement-related initiatives and actively encourage customer loyalty and draws in conversions. Combining algorithms like Collaborative Filtering, Recurrent Neural Networks, K-Means Clustering as well as Gradient Boosting Machines, the paper shows that AI has the ability to personalize user interaction, predict behavior and scale back interfaces in real-time. Empirical reports revealed that such AI-based approaches raised the conversion rates by up to 161 percent, the points of engagement improved, and the indices of loyalty improved which demonstrates that the users react positively to dynamically intensified experiences. Collaborative Filtering and RNN models have been effective in personalized recommendations and predicting sequential behavior and the K-Means Clustering model allowed user targeted interventions by clustering. Gradient Boosting Machines were highly predictive on conversion probability, enabling companies to preemptively work with high-value users in order to manage churn. Comparative analysis also has shown that there is great performance when multiple AI solutions are implemented at the same time, which also shows the importance of having an integrated UX framework relying on personalization, predictive analytics, and segmentation all in parallel. Besides, this paper highlights the worth of the ethical and practical implementation of the AI implementation e.g. transparency, privacy and fairness in a bid to have a sustainable implementation. Overall, the current paper demonstrates that the use of AI-based UX solutions is efficient and serves to attract immediate attention, as well as do create user loyalty in the short and long perspective and model the opportunities of the conversion to the maximum. The findings are useful to digital firms and UX masters wishing to leverage AI to provide surface experiences that are flexible and experience-oriented, leading to measurable firm value and more enduring relationships with online consumers who are deep into a very competitive online experience.

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