The present article is an attempt to review the important advances and recent breakthroughs achieved through Artificial Intelligence (AI) within the field of e-commerce. Electronic commerce encompasses online retail stores, marketplaces, online auctions, and any transaction conducted electronically. Method: An efficient search of the previous studies is done from various databases. All studies that investigated the effectiveness of AI in online commerce during the period from 2004–2023 are retrieved. In e-commerce, AI plays a significant role by analyzing how people use websites, customizing content, and boosting sales through predictions based on individual preferences using AI technology. After reviewing the papers, it has been found that in e-commerce, the absence of AI techniques results in challenges related to detecting fraud, improving customer service, conducting predictive analysis, enabling personalization, and more. It is important to identify and address the structural and social factors influencing customer experiences. Without detailed knowledge of these factors, the outcomes to increase engagement and foster enduring customer relationships are ineffective. The article provides an extensive overview of the latest progress, illustrating how AI has transformed and redefined the online shopping landscape, influencing aspects ranging from customer experiences to predictive analytics and more.