This book chapter explores how AI-powered personalization and hyper-personalization have transformed digital marketing, illustrated through concrete examples encountered in daily life. Thanks to big data, machine learning, and data analytics, marketing today has evolved into a smarter and more proactive structure that focuses directly on the individual rather than merely on similar consumers. In this transformation, recommendation systems emerge as key tools that facilitate the consumer decision-making process and make the experience more seamless. This chapter also discusses the delicate balance between the benefits offered by hyper-personalization and privacy concerns, emphasizing the pivotal role of trust in this process. The study argues that sustainable success in AI-based marketing applications depends not only on technological capability but also on adopting an ethical, transparent, and trust-oriented approach.