This study examines the impact of Artificial Intelligence (AI) on digital marketing performance in emerging markets. As businesses increasingly adopt AI-driven technologies such as predictive analytics, automation tools, and personalized recommendation systems, understanding their influence on marketing outcomes has become essential. The study aims to evaluate the level of AI adoption, assess its effect on digital marketing performance, examine the role of AI-driven personalization on customer behavior, and identify challenges affecting AI implementation in emerging markets. A quantitative research approach was adopted, and data were collected through structured questionnaires distributed to marketing professionals and business organizations. Reliability analysis using Cronbach’s Alpha confirmed that all measurement scales were internally consistent, exceeding the recommended threshold of 0.70. Descriptive and inferential statistical analyses were conducted to test the study objectives. The findings reveal that AI adoption has a significant positive impact on digital marketing performance, particularly in enhancing customer engagement, improving targeting accuracy, and increasing return on investment. Additionally, AI-driven personalization was found to positively influence customer satisfaction and purchase intentions. However, challenges such as limited technological infrastructure, high implementation costs, and skill gaps remain barriers to effective AI utilization in emerging markets. The study concludes that Artificial Intelligence serves as a strategic tool for improving digital marketing performance in emerging economies and recommends increased investment in AI capabilities to achieve competitive advantage.