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Abstract
The increasing adoption of artificial intelligence (AI) in e-commerce has intensified the use of personalization strategies, particularly customization depth, to enhance customer experiences. However, existing studies have largely focused on the positive outcomes of personalization, with limited attention to its dual effects, especially perceived intrusiveness, and insufficient evidence from emerging economies such as Nigeria. This study addresses this gap by examining the effect of customization depth on perceived usefulness and perceived intrusiveness, and how these perceptions influence customer engagement among e-commerce consumers in Ota, Ogun State. A quantitative survey design was employed, using structured questionnaires administered to 164 respondents selected through purposive and convenience sampling. Data were analyzed using frequency statistics and linear regression analysis. The findings reveal that customization depth significantly increases both perceived usefulness and perceived intrusiveness. Perceived usefulness strongly enhances customer engagement, whereas perceived intrusiveness has no significant effect on engagement. The study recommends that firms adopt value-driven and customer-centric personalization strategies that prioritize relevance and usability while maintaining transparency. Policymakers should establish data protection regulations to address privacy concerns. The study contributes to theory by extending the S-O-R framework and offers practical insights for businesses, consumers, and regulators in emerging digital markets.