Abstract: Artificial Intelligence (AI) has emerged as a transformative force in modern marketing, significantly influencing customer engagement, personalization, and business decision-making. The increasing integration of AI-enabled technologies such as chatbots, virtual assistants, targeted advertisements, voice assistants, personalized recommendations, secure payment systems, and automated customer services has altered the manner in which organizations interact with consumers. In this context, understanding customer perception toward AI in marketing has become increasingly important. The present study examines the influence of technological and perceived factors on customer perception toward the use of Artificial Intelligence in marketing with special reference to Bengaluru city. The study adopted a descriptive and analytical research design. Primary data were collected through structured questionnaires administered to consumers with online buying habits, while secondary data were gathered from books, journals, reports, and online sources. A sample of 402 respondents was selected using purposive sampling. Statistical analysis was carried out using SPSS software, and regression analysis was applied to examine the relationship between independent variables and customer perception toward AI in marketing. The findings reveal that technological factors significantly influence consumer perception toward AI usage in marketing. Voice assistants, targeted advertisements, fraud detection and secure payment systems, dynamic pricing, and visual search tools emerged as major positive determinants, whereas chatbots and facial recognition/AR-VR applications demonstrated mixed or negative consumer responses. Regarding perceived factors, trust in AI, perceived usefulness, personalization, and user experience significantly and positively influenced customer perception. Conversely, perceived risk, negative social influence, and unfavorable cost–benefit evaluations negatively affected consumer acceptance of AI-based marketing practices. The study concludes that successful implementation of AI in marketing depends not only on technological advancement but also on building customer trust, transparency, ethical practices, personalization, and positive user experiences. The findings provide valuable insights for marketers, businesses, and researchers in designing customer-centric and sustainable AI marketing strategies that enhance long-term consumer acceptance and marketing effectiveness. Keywords: Artificial Intelligence, Marketing, Customer Perception, Technological Factors, Perceived Factors, Bengaluru City.