ARTIFICIAL INTELLIGENCE AND SOCIAL COMMERCE IN DIGITAL BUSINESS ECOSYSTEMS

Abstract

Artificial Intelligence (AI) has emerged as a transformative technology that is reshaping social commerce and digital business ecosystems by enhancing customer engagement, business intelligence, and operational efficiency. This study examines the role of AI technologies including machine learning, natural language processing, recommendation systems, predictive analytics, generative AI, and intelligent chatbots in strengthening digital commerce platforms and improving business performance. The study adopts a descriptive and analytical approach based on recent scholarly literature, industry reports, and digital commerce trends. The findings reveal that AI significantly enhances personalized shopping experiences, customer satisfaction, purchase intention, and organizational decision-making while reducing operational costs and improving marketing effectiveness. The rapid growth of India's digital economy is reflected in approximately 185.8 billion UPI transactions during FY 2024–25, demonstrating the increasing adoption of AI-enabled digital commerce and digital payment systems. However, challenges such as data privacy, cybersecurity, algorithmic bias, and ethical AI governance remain critical concerns. The study concludes that responsible AI implementation is essential for building sustainable, customer-centric, and competitive digital business ecosystems.