The study explores the effects of artificial intelligence (AI) and predictive analytics on digital marketing strategy and return on investment (ROI). It reviews relevant literature on the use of AI and predictive analytics in digital marketing, focusing on email marketing, customization, social media marketing optimization, and consumer segmentation. The research methodology is described, including data collection and analysis procedures. The findings highlight the significant impact of predictive analytics and AI on digital marketing strategy and ROI, with businesses that effectively utilize these technologies reporting higher engagement, conversions, and revenue growth. The study acknowledges limitations and proposes future research directions of successful AI and predictive analytics integration in digital marketing campaigns. It concludes with recommendations for businesses to invest in predictive analytics and AI to remain competitive in the dynamic digital landscape.