ROLE OF AI IN IMPROVING E – COMMERCE SALES PERFORMANCE

Abstract

Artificial intelligence has become an important capability in modern electronic commerce because online retailers operate in environments where customer expectations, product choices, prices and competitive conditions change rapidly. This paper examines the role of artificial intelligence in improving e-commerce sales performance through personalization, recommendation systems, demand forecasting, dynamic pricing, conversational commerce, customer-service automation, fraud detection, inventory optimization and marketing analytics. The study adopts a conceptual research approach based on a structured review of established academic and industry literature. It argues that AI improves sales performance not merely by automating individual tasks but by connecting customer data, operational decisions and marketing actions into a more responsive commercial system. Personalized recommendations can improve product discovery and relevance, predictive models can support inventory availability, and intelligent pricing can help firms balance demand and margin objectives. At the same time, AI adoption creates challenges involving data quality, privacy, algorithmic bias, cybersecurity, implementation cost and employee capability. The paper concludes that the strongest sales outcomes are likely to emerge when AI is implemented with clear business objectives, reliable data, human oversight and continuous measurement. AI should therefore be treated as a strategic decision-support capability rather than a substitute for sound management