The rapid adoption of artificial intelligence (AI) in marketing has enabled highly personalized consumer experiences, reshaping how brands interact with their audiences. However, this personalization often relies on extensive data collection and analysis, raising significant concerns about consumer privacy. This study explores the tension between personalization and privacy in AI-based marketing systems, focusing on how these factors influence consumer trust. By examining consumer perceptions, attitudes, and behavioural responses, the research investigates whether increased personalization enhances trust or whether privacy concerns undermine it. The study employs a mixed-method approach, combining survey data and qualitative insights to analyze the relationship between perceived benefits and risks. The findings aim to provide a nuanced understanding of how organizations can balance personalization strategies with ethical data practices to foster long-term consumer trust.