Published Online: August 28, 2025
Author Details
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Artificial Intelligence (AI) is transforming the online retailing industry by providing personalized suggestions, fast support and effective inventory control. E-retailers such as Amazon and Alibaba count on machine learning to engage customers more, keep them happy and make them loyal which leads to more purchases and repeat business. Even so, adopting AI brings about issues, mainly with data privacy, how consumers trust companies, ethics and investing in new technology and learning in the organization. It achieves its research goals by examining AI methods of leading retailers and discovering the main elements that lead to success. The purpose of using a comparison case study is to learn how AI impacts the quality of personalization, recommendations and customer support. It points out that AI is now useful for suggestions, for example shopping bots or top practices, so the study also analyzes privacy concerns which can affect customers’ happiness. Important results show that AI personalization makes customers happier, support AI systems encourage them to stay and engage and strong data privacy makes them feel more trusted. The research consists of a literature review, a description of its methodology, case analysis and suggestions for retailers on how to apply AI strategies for the benefit of customers and their businesses.
Keywords
Artificial Intelligence (AI); Customer Satisfaction; Customer Engagement; Data Privacy; Online Retailing; Machine Learning; Personalized Recommendations