Artificial Intelligence in Commerce: Opportunities, Challenges, and Future Prospects

Abstract Artificial Intelligence (AI) has rapidly become a transformative force in global Commerce. Once confined to laboratories, AI now drives practical business applications ranging from marketing automation to customer service and financial management (Davenport & Ronanki, 2018). Through tools such as predictive analytics, chat bots, and machine learning algorithms, businesses are redefining how they interact with consumers and optimize operations. In India, AI adoption is expanding under the Digital India initiative and the growing digital economy (NITI Aayog, 2018). This paper examines the applications, benefits, and challenges of AI in commerce with a focus on both Indian and global contexts. It discusses how AI influences marketing, finance, supply chains, and human resource management while also highlighting concerns about data privacy, job displacement, and ethical issues. The study concludes that AI offers immense opportunities for innovation and growth, but its responsible adoption will determine whether it leads to inclusive and sustainable commerce.