This chapter comprehensively examines the transformative impact of artificial intelligence (AI) and data analytics on e-commerce. The acceleration of digitalization and the rise of online shopping, especially during the pandemic, have reshaped customer expectations and forced businesses to differentiate themselves not only through products and prices but also by delivering personalized experiences and data-driven services. In this context, AI applications generate significant value across the entire e-commerce spectrum, from customer interfaces to supply chain operations.

First, recommendation systems and conversational commerce are discussed in terms of their role in enhancing personalization and deepening customer engagement. Content-based, collaborative, and hybrid filtering approaches, along with chatbots, virtual assistants, and natural language processing technologies, accelerate consumer decision-making processes and increase satisfaction and loyalty. Second, predictive analytics techniques are addressed, focusing on demand and inventory forecasting methods such as time series analysis, regression models, and multi-series machine learning approaches. These methods provide strategic advantages in stock optimization, pricing, logistics planning, and sustainability initiatives.

Finally, the chapter emphasizes the ethical and governance challenges brought about by the adoption of AI. Issues such as data privacy, algorithmic bias, black-box decision-making, and security vulnerabilities highlight the need for regulatory frameworks. International standards such as the OECD AI Principles, UNESCO’s Recommendation on the Ethics of Artificial Intelligence, and the European Union’s AI Act, along with Turkey’s Personal Data Protection Law (KVKK), serve as guiding frameworks for ensuring responsible and trustworthy AI applications.

Overall, AI and data analytics stand out as key drivers that not only enhance competitiveness in e-commerce but also redefine customer experiences, optimize operational efficiency, and bring ethical governance debates to the forefront of digital transformation.