Background: The increasing integration of Artificial Intelligence (AI) has revolutionized the marketing sector as a whole. Practices such as recommendation systems, predictive analytics, and chatbots have streamlined how brands create engagement. However, their long-term impact on consumer-brand relationships remains underexplored, particularly within the fast-moving consumer goods (FMCG) sector where purchases are often low-involvement and brand loyalty is hard to achieve.

Purpose: This thesis investigates what effect AI-integrated marketing has on consumer engagement and consumer retention within the FMCG sector. It examines the long-term effects of AI marketing through consumer retention indicators such as repurchase intentions and brand trust, reflecting sustained consumer engagement and consumer-brand relationships.

Method: A quantitative research approach was adopted, using a structured online survey to collect data from Generation Z. The data was analyzed in SPSS using Pearson correlation matrices to identify potential relationships between AI-integrated marketing and indicators of consumer engagement and consumer retention.

Conclusion: The results indicate how AI-integrated marketing positively influences both consumer engagement and consumer retention in the FMCG sector. Thus suggesting that strategically applied AI tools can contribute to stronger, more enduring consumer-brand relationships.