AI-Driven Digital Retail Transformation: A Comprehensive Study of the Future of E-Commerce

Abstract

Artificial Intelligence (AI) is re-inventing the design, operations, and customer relationships approaches of the global e-commerce system. Customized suggestions and dynamic pricing models, smart logistics, and chatbots are just some examples of AI technologies that have made modern digital retail. This research paper is a hybrid, as it explores the ways AI is transforming e-commerce based on theoretical, empirical, and a simulated dataset, which is a model of consumer behavioral responses to AI-enabled retail interfaces. An abstract map demonstrates the multilateral interplay of AI technologies, efficiency of the operations, the extent of personalization, and consumer trust that further affects the purchase intentions and brand loyalty. Findings of a simulated dataset of 500 hypothetical online shoppers indicate that AI-based personalization, quality of recommendations, and trust in the automated systems have a major predictive power of purchase intention and satisfaction. The paper then ends by providing strategic suggestions that should be adopted by digital retailers, ethical issues, and future of AI-facilitated commerce.