Revenues from online retail business continue to climb up around the globe and the application of Artificial Intelligence has dramatically changed the way, the business performs activities, which were earlier being performed by human beings. Artificial intelligence helps online retailers follow business trends, changing customer needs in the market. The company can gather a wide range of information, assess customers, and then adequately respond to their requirements and habits by providing quality services. With the help of AI, online retailers are also getting numerous benefits such as operational efficiency, cost reduction, consumer satisfaction, competitive advantage and many more. The objective of this study is to find out the driving factors that influence the online retail business using AI technologies and their impact on the overall performance of businesses. Primary data were collected from a self-administered questionnaire through a mail survey of 125 small and medium sized online retail firms, which eventually led to 114 valid questionnaires. Analytical results indicate that the surveyed factors, operational efficiency, consumer experience, digital access and cost effectiveness positively affect the growth and performance of online retailers in India.