This research paper critically reviews how Artificial Intelligence (AI) affects the consumer's buying decision in the field of digital marketing. Businesses have seen how AI products like chatbots, recommender systems, predictive analytics, virtual assistants and customized advertising have changed the way they engage with customers in online spaces. The main goal of the study is to examine the impact of AI-driven marketing strategies on consumers' behavior and attitudes, their trust in the brand, and their willingness to purchase. It delves into how AI can provide personalized experiences, boost customer engagement, aid in decision-making and contribute to customer satisfaction. The study also explores how strong consumers are when they decide to buy online depending on the AI-generated suggestions. The information obtained for this study comes from primary and secondary sources, such as structured questionnaires and scholarly works, to understand the perceptions held by the consumers about the AI- based marketing tools. The findings suggest that AI has a substantial impact on consumer purchasing habits, offering benefits like convenience, personalized product recommendations, on-demand support, and targeted promotions. But certain privacy, transparency, and ethical considerations surrounding consumer data also impact consumer trust and adoption of AI solutions. Overall, the study demonstrates the impact of AI on the digital economy and its role in transforming business practices and consumer behavior in digital marketing....