Applications of Artificial Intelligence in Contemporary E-commerce: A Descriptive Review

Abstract

Artificial Intelligence has changed the face of modern e-commerce by enhancing user experiences, operational efficiency, and strategic decision-making. This paper will provide an overall review of AI applications in e-commerce with regard to their transformative potential and challenges. First, it explores the basics of AI in e-commerce, followed by detailed discussions on personalization, predictive analytics, customer service automation, inventory management, and fraud detection. Recommendation engines and chatbots powered by AI are discussed in terms of customer satisfaction and retention. Further, the review has emphasized how AI optimizes logistics, supply chain, pricing strategy, and augmented reality experience. Ethical considerations of data privacy and algorithmic bias are considered to underscore the complexity of the implementation of AI technologies. This paper concludes by considering some future research directions and practical strategies for how AI can reach its full potential in e-commerce. With a comprehensive assessment of the contemporary trends and applications, this study aims to add value for both industry stakeholders and researchers.