Artificial intelligence (AI) is emerging as a transformative force across multiple sectors, including the food industry. AI’s potential to predict consumer preferences and deliver personalized dietary recommendations has profound implications for consumer satisfaction, public health, and sustainable consumption. This study investigates the role of AI in predicting consumer preferences and personalizing food products, with a specific focus on Bihar, India. Both secondary and primary data were used: secondary data were drawn from academic literature, industry reports, and government documents, while primary data were collected from 150 respondents across four districts of Bihar (Bhagalpur, Banka, Munger, and Purnea), covering both urban and rural populations. Survey results show that AI users in Bihar report significantly higher satisfaction with food personalization (M = 4.05) compared to non-users (M = 3.63), t(148) = 4.24, p < 0.0001. Digital literacy is strongly correlated with willingness to adopt AI personalization (r = 0.68, p < 0.001). Regression analysis indicates that digital literacy and AI usage are significant predictors of willingness, while age and income show no significant effect. Chi-square tests reveal urban respondents are significantly more likely than rural respondents to prefer AI-driven personalized products (χ² = 5.87, p = 0.015). These findings confirm AI’s promise in enhancing consumer satisfaction and dietary personalization even in socio-economically diverse states like Bihar. However, challenges including digital divides, infrastructural limitations, and algorithmic bias must be addressed. The paper concludes with policy recommendations for creating inclusive AI systems, enhancing digital literacy in rural Bihar, and embedding AI-driven nutrition into public health campaigns.