EMOTIONAL AI AND CONSUMER TRUST: ISLAMIC ETHICAL BOUNDARIES ON DIGITAL ADVERTISING IN MALAYSIA

Abstract

This study examines how Emotional Artificial Intelligence (Emotional AI) in digital advertising influences Consumer Trust in Malaysia, and how Islamic Ethical Boundaries moderate this relationship within Halal-aligned markets. The ethical framing is guided by key Islamic business ethics principles including Sidq (truthfulness), Amanah (trustworthiness), and Adl (fairness), with attention to avoiding gharar (excessive uncertainty) and tadlis (deception) in advertising practices. A quantitative, cross-sectional survey design was adopted. Data were collected from Malaysian online consumers exposed to AI-driven digital advertising across social media, e-commerce, and mobile platforms using a structured questionnaire. The instrument measured perceived Emotional AI practices, perceived Islamic ethical boundaries in advertising, and consumer trust outcomes. Data analysis was conducted using statistical procedures to assess relationships among the constructs. Findings indicate that Emotional AI can strengthen consumer trust when consumers perceive ethical safeguards such as transparency, fairness, and responsible data stewardship. Trust is weakened when emotional personalisation is perceived as intrusive, opaque, or potentially manipulative. Islamic ethical boundaries are found to be salient in shaping trust judgments, particularly where consumers expect advertising to reflect Sidq, Amanah, and Adl. The study concludes that the effectiveness of Emotional AI in Halal-aligned digital advertising depends not merely on technological sophistication, but on the presence of clear ethical boundaries that prevent deception, minimise uncertainty, and protect consumer autonomy. Advertisers and platform operators should implement clearer disclosure of emotional data usage, strengthen consent and transparency practices, and adopt ethical governance aligned with Islamic business ethics to sustain consumer trust in Malaysia’s digital advertising ecosystem.