Artificial Intelligence (AI) in Commerce: Business Models, Consumer Experience, and Future Outlook – Sept 2025

Author: Chaudhari N.G.*
Assistant Professor
Faculty of Commerce and Management KCE Society’s
Moolji Jaitha College, Jalgaon

Abstract:

Artificial Intelligence (AI) is revolutionizing the commerce sector by enhancing consumer experiences, optimizing operations, and transforming business models. This paper examines the evolution of AI in commerce, from Amazon’s early recommendation systems to the current advancements in generative AI and autonomous agents. Key applications such as personalized recommendations, chatbots, dynamic pricing, fraud detection, visual search, and generative AI are explored, highlighting their economic impact. The paper also discusses emerging business models like conversational commerce and the “sell-it-before-you-make-it” paradigm. The projected market growth of AI in commerce, from USD 8.65 billion in 2025 to USD 22.60 billion by 2032, underscores its transformative potential. The study concludes by analysing the future trajectory of AI in commerce, emphasizing hyper-personalization, autonomous decision-making, and sustainable, transparent ecosystems.

Keywords: Artificial Intelligence in Commerce, E-commerce, Generative AI, Hyper-Personalization, AI-Driven Business Models

DOI: 10.65282/sjrl.vo.1.issue.02.003