Artificial Intelligence (AI) has transformed digital marketing by enabling businesses to deliver personalized customer experiences, automate marketing activities and improve decision-making through data analytics. This study examines the impact of AI on digital marketing strategies by analyzing consumer awareness, acceptance and perceptions regarding AI-powered marketing tools. Primary data were collected from college students using a structured questionnaire, and percentage analysis was used to interpret the responses. The findings indicate that AI positively influences customer engagement, personalized recommendations, targeted advertising and marketing efficiency. Respondents also recognized the growing importance of chatbots, predictive analytics and Generative AI in modern digital marketing. However, concerns regarding data privacy, transparency and ethical use of AI continue to influence customer trust. The study concludes that AI has become an essential component of digital marketing strategies and recommends responsible AI adoption to achieve sustainable business growth and improved customer satisfaction.