Artificial intelligence and the impact of the EU AI Act in business organizations

Abstract Artificial intelligence (AI) is transforming industries worldwide, and the e‐commerce sector is at the forefront of leveraging its capabilities to drive innovation and efficiency. The paper explores the integration of artificial intelligence in e‐commerce, focusing on the ethical and regulatory implications introduced by the EU AI Act. This legislative framework aims to ensure the responsible deployment of AI by classifying AI systems into risk categories and imposing compliance requirements. It also underscores both the opportunities and challenges that AI presents to businesses, particularly in enhancing consumer experiences through automation and data‐driven decision‐making processes. The paper provides a comprehensive review of the AI landscape in Europe, analyzing the impact of the EU AI Act, particularly on small and medium‐sized enterprises and startups. Through a mixed‐methods approach, the study investigates how regulatory compliance may influence business innovation, market competitiveness, and consumer trust. The recommendations proposed aim to develop a trustworthy AI ecosystem that could stimulate long‐term growth and enhance the global positioning of small European businesses.