TRANSFORMATIONAL IMPACT OF ARTIFICIAL INTELLIGENCE TECHNOLOGIES ON THE DEVELOPMENT OF E-COMMERCE
Abstract
The aim of this article is to investigate the transformational impact of artificial intelligence (AI) technologies on the development of e-commerce and to identify current challenges and future prospects of their implementation. Relevance. E-commerce has become a pivotal sector of the global economy, with its market projected to reach $6.4 trillion by 2024. AI technologies are increasingly critical for maintaining competitiveness in online retail by enabling data-driven decision-making and enhanced customer experiences. Methodology. The research employs a systematic approach that combines analysis of literature and recent studies, examination of statistical data on AI adoption in e-commerce, and comparative analysis of international (primarily EU) and Ukrainian practice. This mixed-method approach allows a comprehensive evaluation of how AI transforms e-commerce processes. Results. The findings show that AI-driven tools such as personalization engines, chatbots, and predictive analytics significantly improve key performance metrics in e-commerce (e.g., higher conversion rates and customer acquisition efficiency). AI enables online retailers to anticipate consumer needs and automate business processes, resulting in improved customer satisfaction and operational efficiency. However, the study also highlights several challenges limiting the transformational impact of AI: (1) uneven adoption across businesses – large companies in the EU implement AI at rates up to ~41%, whereas small firms lag behind at ~11%; in Ukraine, only 6.9% of enterprises have implemented AI, indicating a significant gap; (2) organizational and technical barriers such as insufficient digital maturity and expertise, as well as high costs, which particularly impede small and medium e-commerce enterprises; (3) ethical and legal issues, including algorithmic bias and consumer privacy concerns, which necessitate the development of regulatory frameworks and responsible AI strategies. Despite these challenges, leading e-commerce companies (e.g., Amazon, Alibaba) demonstrate that AI can revolutionize online retail by powering personalized product recommendations, dynamic pricing, efficient supply chain management, and 24/7 intelligent customer service. Practical value. The article provides recommendations for phased AI implementation tailored to enterprise size and industry specifics, aligning with best European practices. Proposed measures include starting with high-impact applications (text and data analytics, customer interaction automation) and gradually expanding to advanced AI solutions (such as voice and image recognition). Additionally, it emphasizes training and hiring AI specialists (the “expert function”) and adopting ethical AI guidelines to mitigate risks. These insights and guidelines can assist e-commerce businesses and policymakers in planning AI integration strategies that enhance competitiveness and foster sustainable development of the e-commerce sector.
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