The Influence of AI-Curated Instagram Reels on Brand Loyalty Among Gen-Z Consumers

Abstract

Artificial intelligence (AI) has completely changed the way of decision making, with social media evolving into a discovery mechanism. This study investigated the influence of AI curated Instagram reels on the brand loyalty of Generation Z (Gen Z), specifically focusing on the shift towards passive discovery and loyalty gap-engagement. Using Stimulus-Organism-Response (S-O-R), as a framework for the study the quantitative survey design methodology was used. The sample consisted of 300 active Gen Z users of Instagram aged between 18-27. To examine the relationship between perceived AI personalization, brand loyalty and user engagement, mediation analysis and Pearson correlation were utilized. The results revealed that Algorithmic Relevance is a potential driver for user engagement (r =.071), which confirms that Gen Z prioritize transaction utilization. The study indicated a paradox; however, there is a relation between user engagement and brand loyalty, respondents who reported higher loyalty levels also showed greater concerns about data privacy.