Emerging Technologies in Consumer Engagement and Compliance: The Impact of AR/VR on Brand Loyalty and NLP in Automating Regulatory Risk Management
DOI:
https://doi.org/10.15662/IJARCST.2025.0805010Keywords:
Augmented Reality (AR), Virtual Reality (VR), Consumer Engagement, Brand Loyalty, Natural Language Processing (NLP), Regulatory Risk Management, Compliance Automation, Regulatory Intelligence, Immersive Marketing, Trust and AuthenticityAbstract
In recent years, augmented reality (AR), virtual reality (VR), and natural language processing (NLP) have emerged as two of the most transformative technologies influencing both marketing and compliance disciplines. This study investigates how AR/VR-driven consumer engagement strategies enhance brand loyalty, and how NLP-based systems automate regulatory risk management, thereby shaping organizational performance and risk posture. On the consumer side, immersive AR/VR experiences are shown to deepen emotional and cognitive brand–consumer relationships through heightened sensory input, personalization, realism, and interactive storytelling. These experiences lead to stronger brand attachment, increased satisfaction, and higher purchase intentions and loyalty. On the compliance side, NLP technologies—leveraging techniques such as named entity recognition, semantic matching, document parsing, regulatory change detection, sentiment and event extraction—significantly reduce manual effort, improve monitoring of evolving regulations, detect hidden risk factors, and enable more proactive compliance. The paper synthesizes recent empirical findings and case studies, and proposes a conceptual framework linking AR/VR-mediated brand experience, trust/loyalty outcomes, and NLP-enabled compliance automation. Key challenges including data privacy, regulatory ambiguity, model transparency, system integration, and ensuring authenticity are also examined. The overall conclusion is that integrating AR/VR for engagement together with NLP for compliance offers a dual pathway: brands can not only build loyalty and competitive differentiation, but also reduce risk and regulatory costs—provided the technologies are deployed responsibly with human oversight.
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