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AI-Enhanced Personalization In E-Commerce: Redefining Customer Interaction

Ravikumar Perumallaplli

2025 · DOI: 10.2139/ssrn.5228719
Social Science Research Network · 0 Citations

TLDR

This study looks into how AI-enhanced customization might improve customer experiences and drive business expansion and emphasizes the value of openness and customer trust while discussing the ethical concerns related to data privacy and upcoming advancements in AI applications.

Abstract

: Rapid advancements in artificial intelligence (AI) technology are revolutionizing e-commerce and drastically altering how companies engage with their clientele. This study looks into how AI-enhanced customization might improve customer experiences and drive business expansion. Businesses can create personalized shopping experiences that address each customer's interests and demands by employing AI technologies to analyze customer data. Product discovery and conversion rates are significantly increased when recommendation systems are combined with collaborative and content-based filtering techniques. Additionally, AI-driven chatbots and virtual assistants improve customer happiness and engagement by streamlining customer care interactions. E-commerce companies can use AI technology to boost customer loyalty and operational efficiency, according to Bai, this essay emphasizes the value of openness and customer trust while discussing the ethical concerns related to data privacy and upcoming advancements in AI applications. In the end, e-commerce consumer involvement will be redefined by the use of AI technology, offering firms both advantages and disadvantages.