Retail customer engagement has broadened far and wide thanks to the swift adoption of Artificial Intelligence (referred henceforth as AI) technologies; making it possible for businesses to create a lot more personalized, efficient, and interactive consumer experience. In this paper, a systematic review of recent research on AI in retail settings was conducted based on the implementation and application of AI tools in consumer-retailer interface areas, as well as their strategic integration and influence on consumer behavior. Based on the review of numerous contemporary academic peer-reviewed papers, this paper examines a range of AI technologies such as chatbots, recommendation systems etc that retailers are using for improved customer engagement. Specifically, this research investigates the ways in which these technologies complement marketing strategies like personalization, Omni channel integration, and sentiment analysis aimed at the reduction of perceived risk and increase satisfaction, loyalty, and purchase intention among customers. Although AI is expected to bring significant advantages in operational execution and consumer satisfaction, the review also underlines challenges surrounding trust adherence by consumers, privacy in data sharing and ethical considerations. The findings highlight the importance for retailers to strike a balance between technological innovation and transparency, as well as foster customer- centric values. Results of the review are summarized, including that there was not enough data to provide a comprehensive understanding of how consumers may react to long-term exposure to AI-driven engagement with brands and that more work needs to be done on studies of block chain. Key recommendations for future research are cross-cultural exploration of AI toleration and the fusion of AI with green retail routines. With nobody else being present in the industry and many of our clients wanting to optimize their customer engagement models, this study offers rich learnings for other academics and practitioners who are focused on how to use AI effectively in retail customer engagement – encouraging strategic approaches that benefit both businesses, as well as consumers themselves.
