As a result of the fast development of artificial intelligence (AI), digital marketing has been revolutionized, and advertising that are created by AI have become an essential component in the process of influencing consumer purchases. The purpose of this research is to investigate the impact that ads powered by artificial intelligence have on customer behavior, with a particular emphasis on crucial aspects such as customization, engagement, trust, and buy intent. Through the use of a quantitative methodology, primary data is gathered from 125 customers in Hyderabad by means of a structured survey. An examination of the data is performed using regression analysis in order to assess the influence that adverts created by AI have on the perceptions and choices of consumers about their purchases. An understanding of how advertising tactics powered by artificial intelligence may improve consumer loyalty and engagement with a brand is provided by the results. This research makes a contribution to the expanding body of literature on artificial intelligence in marketing and provides practical implications for companies that want to maximize the effectiveness of advertising campaigns driven by AI.