ETHICAL IMPLICATIONS OF AI IN E-COMMERCE: BALANCING INNOVATION WITH DATA PRIVACY AND FAIRNESS

Abstract

The integration of artificial intelligence (AI) in e-commerce has revolutionized the industry by enabling personalized shopping experiences, predictive analytics, and efficient supply chain management. However, this innovation comes with significant ethical implications, particularly concerning data privacy and fairness. This paper explores the ethical challenges posed by AI in e-commerce, focusing on the trade-offs between technological advancements and the protection of consumer rights. It highlights concerns such as the potential misuse of consumer data, biases in AI algorithms leading to unfair treatment, and the lack of transparency in automated decision-making processes. Furthermore, the study examines regulatory frameworks and best practices aimed at fostering ethical AI implementation in the e-commerce sector. By balancing innovation with ethical considerations, businesses can build consumer trust, ensure compliance with data protection laws, and promote a fair marketplace. This paper underscores the need for a proactive approach to ethical AI adoption, emphasizing accountability, inclusivity, and the importance of safeguarding consumer interests in the digital age.