ETHICAL IMPLICATIONS OF ARTIFICIAL INTELLIGENCE ON CONSUMER PRIVACY IN E-COMMERCE: A COMPREHENSIVE ANALYSIS IN THE INDIAN CONTEXT

Artificial Intelligence (AI) is transforming the e-commerce industry by offering highly personalized shopping experiences and enhancing operational efficiencies. However, these advancements come with significant ethical challenges, particularly regarding consumer privacy and data security. This paper explores the ethical implications of AI on consumer privacy within e-commerce, focusing on the Indian regulatory and socio-economic context. It discusses the trade-offs between personalization and privacy, the data security risks inherent in AI systems, and the evolving regulatory frameworks such as the Digital Personal Data Protection Act of 2023. The analysis also highlights consumer perceptions, which are shaped by varying levels of digital literacy across India. By integrating ethical theories and stakeholder perspectives, this paper provides recommendations for businesses to navigate the complex landscape of AI-driven e-commerce while safeguarding consumer privacy and maintaining trust.