The Role of Artificial Intelligence in Transforming E-Commerce: Trends, Consumer Behavior, and Ethical Challenges

Abstract

Artificial intelligence (AI) has become one of the most consequential forces reshaping global commerce in the current decade. From personalized product recommendations to conversational shopping assistants and predictive inventory systems, AI technologies are redefining how consumers discover, evaluate, and purchase goods online. This paper examines the current state of AI adoption in e-commerce, synthesizing recent academic literature to explore its effects on consumer behavior, trust, and decision-making. Using an integrative review approach grounded in the Stimulus-Organism-Response (S-O-R) model and the Expectation-Confirmation Model (ECM), the paper analyzes how AI-driven personalization, recommendation engines, and generative shopping assistants influence purchase intention, customer satisfaction, and long-term brand loyalty. The paper also addresses the ethical and governance challenges associated with AI-enabled commerce, including algorithmic bias, data privacy, and the erosion of consumer autonomy. Findings suggest that while AI substantially enhances convenience, personalization, and operational efficiency, it simultaneously raises unresolved questions about transparency, trust, and equitable access. The paper concludes with managerial implications for retailers and policymakers and outlines directions for future research, particularly regarding cross-cultural and longitudinal investigations of AI-consumer interactions.