1 Research Scholar, School of Management Studies, Gandhi Institute of Engineering and Technology University (GIETU), Gunupur, Raygada, India
2 Professor, HOD, School of Management Studies, Gandhi Institute of Engineering and Technology University (GIETU), Gunupur, Raygada, India
3 Chairman, Interscience Institute of Management & Technology (IIMT), Bhubaneswar, Odisha, India
*Corresponding author: meenanayakmohanty@gmail.com
This study explores ethical AI in FMCG advertising, showing that bias-free personalization delivers both profitability and inclusivity. Campaigns applying fairness and transparency achieved 12–15% higher conversions and an 18% rise in consumer trust. Regression analysis confirmed positive effects on trust (β = 0.27, p < 0.01), loyalty (β = 0.32, p < 0.01), and purchase intention (β = 0.21, p < 0.05). Bias detection further showed Demographic Parity Difference reduced from 0.18 to 0.06. Contrary to the assumption that safeguards increase costs, ethical personalization expanded underserved market reach by 12% and mitigated reputational and regulatory risks. The results highlight that fairness-driven AI fosters consumer satisfaction, sustainable innovation, and inclusive growth in the FMCG sector.
Ethical AI, Personalization, FMCG Advertising, Consumer Trust, Inclusive Growth, Fairness
