How Explainable AI Drives Online Customer Engagement: The Mediating Effects of Trust and Transparency Perceptions

This study examines the role of Explainable Artificial Intelligence (XAI) in shaping online customer engagement (OCE), with trust perception and transparency perception as mediating variables. Drawing on the Technology Acceptance Model (TAM), Trust Transfer Theory, and Social Exchange Theory, a conceptual model is developed in which XAI adoption is posited to enhance user engagement both directly and through the sequential mediation of perceived transparency and perceived trust. Data were collected from 390 active social media users aged 18–55 with recent online purchasing experience. Results are expected to demonstrate that XAI adoption positively and significantly influences both trust and transparency perceptions, which in turn act as key drivers of cognitive, emotional, and behavioral engagement on AI-powered platforms. This research contributes to the growing literature on human-AI interaction, algorithmic transparency, and digital customer engagement, offering actionable implications for platform designers and digital marketers.