ARTIFICIAL INTELLIGENCE IN E-COMMERCE: MAIN DIRECTIONS, BENEFITS, AND POTENTIAL RISKS

Introduction. The article examines the role of artificial intelligence (AI) in the development and transformation of e-commerce, as well as its impact on key aspects of business in the modern digital environment, analyzes the benefits of integrating AI into e-commerce, such as improved customer satisfaction, increased operational efficiency, and enhanced decision-making capabilities, and the role of AI in improving marketing strategies through targeted advertising and recommendation systems, leading to a more personalized shopping experience. Purpose. The aim of the article is to identify areas of use of artificial intelligence in e-commerce, highlight and substantiate threats and obstacles in this process, as well as offer a proposal for cooperation between AI and e-commerce specialists. Methods. The basis for solving the set goal were the methods of comparative analysis, survey, generalization and grouping, statistical analysis, modeling, forecasting and empirical calculation. Results. The article systematizes the main areas of application of AI in e-commerce, in particular, personalization of purchases, which allows creating individualized offers for users, automation of customer service through chatbots and virtual assistants, effective inventory management through demand forecasting and analysis of large volumes of data. Along with the benefits, attention is also paid to the potential risks that companies face when implementing AI. These may include increasing market inequality due to the concentration of technological capabilities in large corporations, as well as potential unemployment due to the automation of jobs. The paper provides a comprehensive analysis of how AI can change the e-commerce landscape, in particular to increase its efficiency and competitiveness, but also emphasizes the need for a cautious approach to the implementation of new technologies. It stresses the importance of ensuring that AI systems are transparent, explainable, and accountable in order to gain consumer trust. The article highlights the importance of establishing clear regulatory frameworks and ethical guidelines to ensure that AI is used responsibly and transparently in business operations. The article also suggests the importance of ongoing research and development to address the emerging challenges related to AI implementation. Finally, an example of a simulation model developed in Python that can be used in e-commerce to optimize logistics and warehousing is provided, demonstrating the practical application of AI to improve business processes.