Driving Millennial E-Commerce Engagement in Indonesia and Australia

The e-commerce sector has expanded over the past years as the world adopts artificial intelligence (AI), along with social interaction patterns and trust. This study examines the effects of AI experience, parasocial interaction, novelty seeking, and trust on Millennial customers in Indonesia and Australia. The research utilized Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS 4.0 to analyse responses from 200 Millennial participants across both countries. Parasocial interaction stands as the primary driver of customer engagement in both Indonesian and Australian markets, with AI experience and trust taking secondary position. The research showed that novelty seeking did not function as a moderator for these identified relationships. This study expands the sparse cross-national research available on e-commerce patterns by showing the ways cultural and structural distinctions affect consumer participation. Businesses need to build trust and use AI tools along with influencer partnerships to develop stronger Millennial relationships in emerging markets such as Indonesia. The research reveals theoretical implications by emphasizing parasocial interaction as more significant than novelty in maintaining long-term engagement and presents actionable recommendations for marketers to improve digital strategy development. The paper discusses research limitations alongside future study recommendations which focus on examining diverse demographic groups and including more predictors while employing longitudinal studies for better insights into changing engagement behaviours.