Spektrum Iran

Abstract Artificial intelligence (AI) is increasingly used as a key tool to redefine digital branding and customer engagement. It encompasses techniques and methods that businesses leverage to create brand value, enhance the effectiveness of customer interactions, and improve marketing strategies. The analysis of interviews indicates that AI applications—through data analysis, advanced algorithms, modeling, and other techniques—bring significant transformations in digital branding processes, while also presenting specific challenges and opportunities. Accordingly, this study focuses on identifying AI techniques, persuasive effects, transformations, and challenges associated with AI implementation in digital marketing and customer engagement. To address the research questions, this study employed a qualitative, field-based approach. Seventeen experts in AI and digital branding were purposefully selected and interviewed using semi-structured format. Participant selection focused on expertise, professional experience, and practical familiarity with AI applications in digital branding. The interviews aimed to explore experts’ experiences, perceptions, and insights regarding AI’s role and functions in branding processes. The interview data were analyzed using thematic analysis. Initially, codes were extracted from the interview transcripts. These codes were then categorized and aggregated to identify sub-themes and, ultimately, the main research themes. The findings indicate that AI applications in digital branding are primarily built on advanced computational and learning-based techniques, including scalable algorithms, machine and reinforcement learning, search and recommender systems, automation, data processing, human–computer interaction, and AI-enabled platforms. These capabilities drive major transformations to digital branding, such as more dynamic and personalized marketing activities, changes in distribution and pricing mechanisms, adaptive business strategies, enhanced decision-making and cybersecurity, improved customer experience, stronger brand positioning, the emergence of digital business models, brand globalization, and value creation. This research contributes to the limited qualitative literature examining AI functions and outcomes in digital branding by drawing on experts' lived experiences, and providing rich and practical insights for researchers and practitioners in the field.