From Comfort to Concern: The Effect of Artificial Intelligence (AI) Personalization and Data Privacy Risk Perception on Consumer Loyalty on Shopee E-Commerce in Surabaya

Abstract

Shopee is the most used e-commerce platform in Indonesia, and its product recommendations depend on AI that processes users' personal data. Drawing on privacy calculus theory, this study examines how AI Personalization and Data Privacy Risk Perception affect the loyalty of Shopee users in Surabaya. The study used an explanatory quantitative design. The sample consisted of 150 respondents aged 18 to 28 who lived in Surabaya and had purchased through the Shopee app, selected by purposive sampling. Data came from a five-point Likert questionnaire with items adapted from recent empirical studies and were analyzed in IBM SPSS Statistics 23 through validity, reliability, and classical assumption tests, multiple linear regression, the t-test, and the F-test. AI Personalization has a positive and significant effect on Consumer Loyalty. Data Privacy Risk Perception is also significant, but its coefficient is positive, so H2, which predicted a negative effect, is rejected. This result points to a privacy paradox among young users. Taken together, the two variables significantly explain Consumer Loyalty.