The Transformation of E-Commerce: Artificial Intelligence and the Future of Digital Retail

Abstract

Artificial Intelligence (AI) is transforming the e-commerce industry, as it allows providing personalized experience, data-based insights, and operational efficiencies. The paper speculates the radical change that AI brought about in digital retail by analyzing 250 e-commerce customers and 50 entrepreneurs in India as primary data. This study considers a structured questionnaire to examine consumer attitudes toward AI-based personalization, trust, and purchase intention and the rates of adoption of AI tools by the business. Descriptive and inferential statistical analysis (mean, correlation, and regression) were conducted to establish the correlation between the adoption of AI and customer satisfaction. The results indicate a positive significant relationship between perceived convenience, satisfaction, and trust in online shopping and the use of AI. Nevertheless, issues related to privacy of data and bias are still present. The research finds out that although AI plays a critical role in competitive advantage, the ethical implementation and transparency are essential in maintaining long-term customer loyalty.