Journal for Social Science Archives

Online ISSN: 3006-3310

Print ISSN: 3006-3302
Volume 3, Number 2, 2025, Pages 606 – 620
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Artificial Intelligence in E-Commerce: A Comparative Study of AI-

Driven Innovations in Amazon and Daraz within the Pakistani Market
Madiha Tariq1, Ali Fayyaz Munir2, Ali Raza Elahi3, Zahra Zainab4, Maria Naqash5 & Anam Fatima6
1
Department of Commerce and Finance, Government College University, Lahore,
Email: [email protected]
2
Department of Commerce and Finance, Government College University, Lahore,
Email: [email protected]
3
Department of Commerce and Finance, Government College University, Lahore,
Email: [email protected]
4
Department of Commerce and Finance, Government College University, Lahore,
Email: [email protected]
5
Department of Commerce and Finance, Government College University, Lahore,
Email: [email protected]
6
Department of Commerce and Finance, Government College University, Lahore,
Email: [email protected]
ARTICLE INFO ABSTRACT
Article History: The study investigates the strong influence of artificial intelligence
Received: April 05, 2025
Revised: May 15, 2025 on reshaping the e-commerce platform in Pakistan. The global e-
Accepted: May 18, 2025 commerce industries use several artificial techniques to promote
Available Online: May 27, 2025
their business for profitability. This research paper explores a
Keywords: comparative analysis of the global leading e-commerce website
Amazon and the local South Asian website Daraz. The study also
Artificial intelligence, Customer
experience, Fraud detection, Business attempts to analyze the level of AI utilization tools in customer
operations, Supply chain management, E-experience, streamlining business operations, fraud detection, and
commerce.
supply chain management. By using convenience sampling
Corresponding Author:
techniques, 400 questionnaires were distributed, out of which 345
Ali Fayyaz Munir were received back. Only 315 responses were deemed valid for
Email: analysis. The study analyzed the data analyzed with SmartPLS. The
[email protected] study findings underscore that the strategic deployment of AI tools
across customer engagement, operational streamlining, fraud
mitigation, and supply chain optimization have a profound and
significant impact on Daraz’s e-commerce performance.
Furthermore, this research also recommended that Daraz enhance
the usage level of artificial intelligence techniques in their business
activities, transforming the business model to increase profitability
and take a step into a global e-commerce platform.

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Introduction
Artificial intelligence (AI) has emerged as a transformative force across various industries,
revolutionizing how businesses operate by improving efficiency, decision-making, and
profitability (Mohammed & Madhumithaa, 2024). In the e-commerce sector, AI has played a
pivotal role in reshaping online retail platforms through data-driven technologies (Raji et al.,
2024). By analyzing vast amounts of consumer data, AI enables personalized recommendations,
targeted advertising, and customized user experiences, significantly influencing consumer behavior
and satisfaction (Gkikas & Theodoridis, 2021; Vashishth et al., 2024). AI tools help guide
customers by analyzing their browsing patterns, purchase histories, and preferences, thereby
enhancing engagement and conversion rates (Vashishth et al., 2024).
World's biggest technology companies, such as Google, Microsoft, Amazon, and OpenAI, have
spent a large amount of money on AI research. These companies have created AI-based products
and services, such as chatbots Kelly (2014) and language model Bouschery et al. (2023) and AI
clouds Jacobides et al. (2021) that influence business activities and innovation (Rikap, 2024). The
conglomerates of big tech and AI are centralizing AI R&D, with labs clustered in places such as
the San Francisco Bay Area and Seattle (Heston & Zwetsloot, 2020). Additionally, the architecture
and mechanism of AI recommender systems has been shown to affect the diversity of product sales
and create challenges for evaluation because of the dynamic nature of user interest (Zhang et al.,
2021).
Leading e-commerce platforms like Amazon and Alibaba have capitalized on AI to strengthen
their competitive advantage. They utilize AI in areas such as supply chain optimization, logistics,
fraud detection, and customer service. In 2023, Amazon’s revenue reached $574.78 billion with a
market capitalization of $1.879 trillion, while Alibaba improved logistics efficiency through smart
supply chain systems (Qiu). In Europe and Asia, countries like the UK, Germany, Japan, and
China are at the forefront of AI adoption in e-commerce, applying technologies such as machine
learning and facial recognition (Xue & Te Chuan, 2024).
In the context of Pakistan, AI integration is gaining momentum across both public and private
sectors. Government initiatives have emphasized AI policy development, education, research, and
infrastructure enhancement (Golra & Khalid). The Futuristic National Security Strategy further
advocates for investments in advanced technologies such as AI and quantum computing to address
strategic threats (Radanliev, 2025). However, challenges like low digital literacy and limited
infrastructure hinder widespread adoption. Nevertheless, AI presents vast opportunities for
enhancing public service delivery, industrial efficiency, and e-commerce growth (Mehmood et al.,
2024).
This study is dedicated to analyzing the role of AI in Pakistan’s e-retail industry with a special
comparison between global player Amazon and regional counterpart Daraz. Amazon – setting the
bar globally in AI-driven personalization and logistics – faces a major competitor in South Asia
serving much of what Daraz calls home, also leveraging AI for customer engagement, fraud
reduction, and operational efficiency. This study attempts to measure the impact of AI tools on
business performance, consumer satisfaction and profit margin in Pakistan’s rising digital
economy.
The study fills a significant gap in the literature by examining how e-commerce trends in AI are
being adopted by emerging markets such as Pakistan. It aspires to enrich the academic debate and
to generate food for thought for policymakers, businesses and entrepreneurs. The results will

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emphasize the significance of AI in enhancing competitive position, service quality, and

sustainable economic growth in Pakistan’s e-commerce.
Amid the increasingly complicated state of online consumer behavior, and digital competition, AI
solutions make it possible to simplify user navigation, improve product searches and personalize
online shopping experiences (Mahmood, 2024). Such AI driven systems are even more important
in markets such as Pakistan, where customers often get lost as they navigate through huge product
lists. Right search tools and recommendations can greatly optimize user satisfaction and
conversion rate (Shahzad, 2024).
This research will explore the adoption of AI applications in functional areas of Daraz, customer
engagement through chatbots, fraud detection system, automatic supply chain control and real-time
inventory control. Evidence should justify that AI is helping Daraz achieve its strategic objectives
and is enabling it to compete in global e-commerce.
The study is organized as follows: Section 2 provides literature review of the studies conducted on
AI in e-commerce, Section 3 introduces the theoretical framework and research methodology,
Section 4 presents the data analysis and findings, and Section 5 provides concluding remarks and
recommendations for policy to enhance AI uptake and digital infrastructure in the e-commerce
sector in Pakistan.

2. Literature Review
2.1 Theoretical framework
2.1.1 Technology-Organization-Environment (TOE) Framework
The Technology-Organization-Environment (TOE) framework offers a holistic approach to
understanding the process by which technology is adopted by organizations, by considering the
three key dimensions of technology, organization, and environment (Akram, 2024). On the Daraz
side, the technology piece would be a focus on the tooling around automation, personalization
algorithms, fraud detection and operational optimization tools that we have built. The structural
dimension concerns Daraz’s internal resources, including its structure, managerial with devoid of
digital mindset and direction of digital. The environmental factor includes elements outside firm,
such as fierce competition in the world e-commerce market and changing customers’ demand
(Cheba et al., 2021). Through permeation of AI in different aspects of its business, Daraz
evidences the alignment with the TOE framework where technological innovation reaps gains in
efficiency, responsiveness, and competitiveness in the international digital marketplace.
E-commerce companies across all verticals are leveraging AI to revolutionize the way they do
business, whether it’s offering superior customer experience, securing the digital environment,
making operations more efficient or streamlining their supply chains (Vashishth et al., 2024).
Drawing on the Technology-Organization-Environment (TOE) framework, the current study posits
that the antecedents of AI adoption in Daraz operational model are defined by the technological
state (AI tools), organizational readiness and environmental conditions (Hoosen). Based on this
framework, the following sets of hypotheses are formulated to examine the impact of AI on
different business domains in Daraz and its competitive standing in global e-commerce scenarios.

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2.2 Hypothesis Development

AI has been imperative to the evolution of the e-commerce ecosystem and ensure that the
shopping experiences are more personalized in real-time to reflect the unique tastes and behaviors
of each customer (Badghish & Soomro, 2024). With the help of copious amount of customer data
– including browsing behavior, purchase history, demographics, and up to real-time indications of
interaction, AI-powered applications like machine learning algorithms and natural language
processing chatbots and virtual assistants can help platforms like Daraz to adapt the product
recommendations and produce personalized content on-the-fly (Kumar et al., 2024). This level of
personalization contributes to a smoother, more engaging user journey that will drive customer
satisfaction, repeat purchases, and long-term brand loyalty that are critical competitive
differentiators in an increasingly crowded and competitive digital space (Rane et al., 2023).
There are also more sophisticated issues related to security and fraud as more and more retail
moves to e-commerce. Utilizing AI in fraud detection is key in maintaining the credibility of
online transactions (Bello & Olufemi, 2024). Using sophisticated methods such as pattern
recognition, anomaly detection, and predictive analytics, these AI systems can recognize
suspicious activities and irregular transaction trends, that could go unnoticed when relying on
humans only and may occur in real-time (Popoola). These AI-based security measures are used by
Daraz to constantly monitor transactional data, detect and eradicate fraudulent attempts in time, as
well as take preventive actions to make the shopping experience safe (Muhammad et al., 2023).
Not only does this provide for the security of financial information for the customers, but also
improves the trustworthiness of the provider platform, which is very vital for the customer
retention and reputation management in the digital era (Belanger et al., 2002).
In addition to improving the user experience and protecting transactions, AI makes internal
operations more efficient by automating tedious, manual labor like, data entry, stock updates, and
other administrative processing. The machine learning capabilities of AI can analyze big data and
deliver actionable information to help us make smarter decisions - and put us on the road to
increased operational flexibility (Paramesha et al., 2024). Daraz employs the use of AI (Artificial
Intelligence) in organizational enhancement, job process management, and employee support
allocation, which enhances potential for cost-effective operations, less human intervention, and
fast-paced process implementation (Khatun et al., 2025). This is an operational shift that allows us
to keep high performance and scalability as we grow our addressable markets through South Asia.
On top, AI disrupts supply chain management, a key playing field for e-commerce success, thanks
to the possibility of accurate demand forecasting, efficient inventory management, and smart
logistics (Kaul & Khurana, 2022). By capitalizing on AI-based predictive models, visual search
technology, blockchain for transparency and real time analytics, Daraz is empowering its supply
chain elasticity and responsibility. This technological integration enables the company to respond
to market changes very quickly, prevent short or overstock, and also deliver the products to their
customers in a timely manner, all of which contribute to great customer satisfaction and market
share (Smith, 2024).
Together, these diverse applications of cutting-edge AI solutions demonstrate Daraz’s forward-
looking investment in the integration of technology throughout their operations. This holistic view
is consistent with the Technology-Organization-Environment (TOE) framework that underlines the
interconnectedness of three dimensions (technological capabilities, organizational readiness and
environmental characteristics) on which successful technology adoption is based (Awa et al.,
2017). With this, Daraz is in a good place to use AI as an enabler for sustainable expansion,
improved customer experience, and lasting competitive dominance in the global commerce
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industry, when it is used to align AI innovations effectively to DSP’s operations and external
market needs (Asghar, 2024).

Hypothesis Formulation
H1: There is a positive impact of AI-driven customer experience on Daraz activities to compete in
global e-commerce platforms.
H2: There is a positive impact of AI-driven supply chain management on Daraz activities to
compete with global e-commerce platforms.
H3: There is a positive impact of AI-driven fraud detection on Daraz activities to compete with the
global e-commerce platform.
H4: There is a positive impact of AI-driven Streamline business operations on Daraz activities to
compete with global e-commerce platforms.

Figure 1: Conceptual Framework

Methodology & Data Collection Method

This research study employed a quantitative approach. The statistical technique for conducting
analysis PLS-SEM was employed due to appropriateness to the present study. This PLS-SEM
consists of two interconnected models: the measurement model and the structural model (Purwanto
& Sudargini, 2021). The measurement model focuses on and ensures that latent variables are
measured by their observed indicator. The measurement model explains the reliability and validity
of constructions before assessing the relationship between variables in the structural model. The
structural model explains the hypothesis relationship between the independent and dependent
variables (Andrews, 1984).
400 questionnaires were distributed, out of which 345 were received back. Only 315 responses
were deemed valid for analysis. The responses are approximately 86.25% from the distributed
questionnaires. Primary data was gathered from 315 valid responses of people of Lahore. Data has
been collected from 142 females and 229 males,120 Daraz employees of four hubs in Lahore
(Kareem block hub, Hurbanspura hub, Moazang hub & Johar town hub), 95 online sellers, and 100
full time Daraz customers. 50% of the audience are master’s degree holders, 45% are bachelor's &

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5% are Intermediate. Data was collected through convenience sampling (Sedgwick, 2013). Data
was collected via a closed-ended Data Collection Method through Snowball activity. Data was
analyzed via SMARTPLS Software.

Figure 2: Sample Population Distribution

Figure 2. The pie chart represents the simple population distribution of the study. The distribution
consists of three groups Daraz Employees, Online Sellers, and Daraz Full-Time Customers. 38%
of questionnaire respondents are Daraz employees which likely provided information relating to
internal operations and the impact of AI integration in Daraz activities. 30% questionnaire
respondents are online sellers who contribute knowledge about AI integration service, quality, and
effects on revenue. 32% of questioners’ respondents are Daraz full-time customers who express
their purchasing experience and services of Daraz website.

Measurement Model Assessment

The measurement model ensures that latent variables are accurately measured by their observed
indicators. Using SMARTPLS Ramayah et al. (2017), validating the measurement model is a
crucial step before testing the structural model and hypotheses. This process assesses the reliability
and validity of constructs through tests of item and construct reliability, including convergent and
discriminant validity.
Data analysis was performed using the PLS-SEM algorithm and bootstrapping in SMARTPLS to
evaluate the relationships between four independent variables—supply chain management,
customer experience, fraud detection, and streamlined operations—and the dependent variable,
Daraz activity. The structural model tests four hypotheses, demonstrating how these predictors
significantly influence the efficiency of Daraz’s activities.
Reliability refers to the consistency of the measurement instrument, with item reliability assessed
through outer loadings and construct reliability measured by Cronbach’s alpha (Haji-Othman &
Yusuff, 2022). Both exceeded the 0.7 threshold, indicating strong internal consistency. Composite
reliability and Average Variance Extracted (AVE) further confirmed reliability, while the Variance
Inflation Factor (VIF) was used to check for multicollinearity.
Outer loadings above 0.7 show a strong correlation between items and their underlying constructs,
with values ranging from 1.45 to 2.94. The fraud detection construct, especially item FR4 with a
loading of 2.731, demonstrated the strongest alignment. Cronbach’s alpha scores for key
constructs, such as ―AI in Supply Chain Management‖ (0.876), ―AI in Streamlining Business
Operations‖ (0.820), and ―AI in Customer Experience‖ (0.806), further confirm high internal

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consistency. These results collectively validate the measurement model’s reliability and strong
convergent validity, indicating that all items effectively measure their intended constructs.

Figure 2: PLS-SEM Model

Table 1: Construct Reliability and Validity
CONSTRUCTS Items Outer loadings Cronbach's alpha
AI In Streamlining Business AU1 1.997 0.820
Operations AU2 2.136
AU3 1.637
AU4 1.989
AU5 1.471
Daraz Activities UT1 1.796 0.722
UT2 1.514
UT3 1.453
UT4 1.910
UT5 1.494
AI In Customer Experience DR1 1.896 0.806
DR2 1.781
DR3 1.816
DR4 1.911
Ai In Fraud Detection FR1 2.361 0.906
FR2 1.746
FR3 2.134
FR4 2,731
FR5 2.520
Ai In Supply Chain INV1 1.916 0.876
Management INV2 2.790
INV3 2.397
INV4 2.927
INV5 1.920
INV6 2.171
INV7 2.298
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Figure 4: Cronbach's Alpha

Figure 4. The bar chart shows Cronbach alpha values for the five key variables, measuring
internal reliability and consistency. Values above 0.70 are acceptable, with higher scores indicating
stronger reliability. Supply Chain Management scored 0.906, Fraud Detection 0.876, Streamlining
Business Operations 0.806, and Customer Experience 0.820, all indicating high reliability. Daraz
Activity scored 0.722, which, while lower, still meets the acceptable threshold, supporting the
study’s overall reliability.
Table 03 presents the correlation matrix, illustrating the relationships among key business
functions within Daraz activities. It highlights the connections between Customer Experience,
Daraz Activity, Streamlining Business Operations, Supply Chain Management, and Fraud
Detection—factors essential to the company’s success and performance.
Supply Chain Management and Customer Experience are critical to any e-commerce platform
(Dragomirov, 2020). Daraz Activity shows a strong correlation with Streamlining Business
Operations (0.891) and Supply Chain Management (0.770), indicating that efficient operations
contribute to successful activities like promotions and sales. Streamlining Business Operations is
also strongly correlated with Supply Chain Management (0.892) and Fraud Detection (0.877),
suggesting that smooth logistics and fraud prevention enhance overall business efficiency. The
correlation between Fraud Detection and Supply Chain Management (0.766) further emphasizes
how effective supply chain management helps reduce fraud risks.
The Heterotrait-Monotrait Ratio (HTMT) analysis confirms the validity of the relationships
between variables, supporting the use of questionnaire items in further analysis (Yusoff et al.,
2020). Customer Experience correlates positively with Supply Chain Management (0.783) and
Business Operations (0.751), showing that improvements in these areas enhance customer
satisfaction. Similarly, Daraz Activity is linked to Business Operations (0.736) and Supply Chain
Management (0.674), reflecting efficient logistics and operations. Fraud Detection also
demonstrates strong internal consistency, with significant correlations to Streamlining Business
Operations (0.750), indicating that robust fraud prevention supports smoother business processes.

Table 2: Composite Reliability and AVE

Constructs Composite Composite reliability Average variance

reliability (rho_a) (rho_c) extracted (AVE)
Customer Experience 0.836 0.880 0.647
Daraz Activity 0.762 0.809 0.467
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Streamline Business 0.827 0.864 0.562

Operations
Supply Chain 0.910 0.926 0.641
Management
Fraud Detection 0.880 0.910 0.669

Table no. 2 represents the results of the measurement of the statistical equation model of
composite reliability and average variance

Table 3: Heterotrait-Monotrait ratio (HTMT Ratio): (Discriminant Validity)

Streamline
Customer Daraz Supply Chain Fraud
Particulars Business
Experience Activity Management Detection
Operations
Customer Experience
Daraz Activity 0.664
Streamline Business
0.913 0.891
Operations
Supply Chain management 0.891 0.77 0.892
Fraud Detection 0.813 0.755 0.877 0.766

Table 03 shows the (HTMT) technique used to determine the discriminant validity in structural
equation modeling, correlation between different constructs

Table 4: Heterotrait-Monotrait ratio: Fornell- Larcker Criteria)

Particulars Customer Daraz Streamline Supply Fraud

Experience Activity Business Chain detection
Operations management
Customer 0.804
Experience
Daraz Activity 0.573 0.684
Streamline Business 0.751 0.736 0.749
Operations
Supply Chain 0.783 0.674 0.773 0.801
management
fraud detection 0.699 0.667 0.750 0.690 0.818

Table 5: Path Coefficient

Path Coefficient Table

Customer Experience -> Daraz Activity -0.155
fraud detection -> Daraz Activity 0.243
Streamline Business Operations -> Daraz Activity 0.459
Supply Chain management -> Daraz Activity 0.273

The table shows the structural model’s path coefficients, indicating the strength and direction of
relationships with Daraz Activity. Streamline Business Operations has the strongest positive
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impact (0.459), while Customer Experience has a small negative effect (-0.155), suggesting a weak
and possibly non-significant influence. Supply Chain Management (0.273) and Fraud Detection
(0.243) both show moderate positive effects. Overall, streamlining operations, efficient supply
chain management, and fraud detection significantly boost Daraz’s performance.
Table 6: Outer loadings bootstrapping

Outer loadings bootstrapping Original Sample Standard T statistics P values

sample mean deviation (|O/STDEV|)
(O) (M) (STDEV)
AU1 <- Streamline Business 0.800 0.803 0.043 18.524 0.000
Operations
AU2 <- Streamline Business 0.818 0.819 0.048 16.911 0.000
Operations
AU3 <- Streamline Business 0.632 0.620 0.106 5.973 0.000
Operations
AU4 <- Streamline Business 0.783 0.778 0.077 10.171 0.000
Operations
AU5 <- Streamline Business 0.696 0.690 0.075 9.230 0.000
Operations
dr1 <- Customer Experience 0.795 0.786 0.064 12.486 0.000
dr2 <- Customer Experience 0.761 0.748 0.088 8.694 0.000
dr3 <- Customer Experience 0.834 0.836 0.043 19.518 0.000
dr4 <- Customer Experience 0.825 0.826 0.044 18.924 0.000
fr1 <- fraud detection 0.837 0.835 0.036 23.194 0.000
fr2 <- fraud detection 0.770 0.765 0.069 11.168 0.000
fr3 <- fraud detection 0.794 0.791 0.050 15.948 0.000
fr4 <- fraud detection 0.852 0.850 0.033 25.696 0.000
fr5 <- fraud detection 0.834 0.833 0.039 21.355 0.000
inv1 <- Supply Chain management 0.756 0.751 0.061 12.485 0.000
inv2 <- Supply Chain management 0.832 0.829 0.041 20.324 0.000
inv3 <- Supply Chain management 0.796 0.794 0.047 16.801 0.000
inv4 <- Supply Chain management 0.858 0.853 0.042 20.200 0.000
inv5 <- Supply Chain management 0.753 0.750 0.057 13.290 0.000
inv6 <- Supply Chain management 0.783 0.779 0.059 13.331 0.000
inv7 <- Supply Chain management 0.820 0.819 0.040 20.334 0.000
UT1 <- Daraz Activity 0.502 0.482 0.150 3.357 0.001
UT2 <- Daraz Activity 0.541 0.522 0.153 3.542 0.000
UT3 <- Daraz Activity 0.744 0.742 0.095 7.850 0.000
UT4 <- Daraz Activity 0.826 0.818 0.056 14.743 0.000
UT5 <- Daraz Activity 0.745 0.747 0.103 7.251 0.000

Table 6, the Outer Loadings Bootstrapping table illustrates measurement model assessment to
confirm that all items are statistically significant in (PLS-SEM). The results shows all p-values are
0.000, indicating all items are highly significant at p < 0.05. T-values exceed the standard 1.96,
confirming 95% confidence in the findings. In Streamline Business Operations, AU3 had the
lowest loading at 0.632 with a T-value of 5.973, still within the significant range, while other items
(AU1, AU2, AU4, AU5) had higher loadings, showing stronger reliability. Fraud Detection
loadings ranged from 0.770 to 0.852, with T-values between 11.168 and 25.696, indicating strong

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reliability. Supply Chain Management showed loadings from 0.753 to 0.858 and T-values from
12.485 to 20.334, confirming item reliability.
Collinearity was assessed using Variance Inflation Factor (VIF) values, all below 5 and ranging
from 1.453 to 2.927, indicating no multicollinearity issues. The highest VIF was 2.927 (INV4),
and the lowest was 1.453 (UT3), all within acceptable limits. Low VIF values suggest stable
relationships between indicators, ensuring each provides unique information. Overall, the results
confirm strong item reliability and no significant multicollinearity problems.

Discussion & Conclusion

Artificial intelligence plays a cardinal role in the E-retailing marketplace. After understanding the
implications of AI transformation in Pakistan's e-commerce industry, specifically, Daraz has
significantly important to increased business efficiency, competition, and customer trust
(Chowdhury et al., 2025). The purpose of this research study was to explore artificial intelligence
appliance impact in multiple dimensions such as customer experience, supply chain management,
fraud detection system, and streamlining business operations and to create a theoretical framework
that looked at the experiential aspects of AI utilization in the e-commerce industry (Sarma et al.,
2020).
The results provide meaningful insight into how artificial intelligence helps to contribute to e-
business operational efficiency and performance within the boundary of Pakistan
First, the study found a dynamic relationship between AI integration, adoption, and performance.
AI-driven has a strong and positive impact on fraud detection and prevention mechanisms. The
model construct measured expressed high reliability and convergent validity. AI integration
reduces the losses and builds customer trust, real-time monitoring, and predictive analytics, which
is a key factor of success in online business (Rane, 2023). The study findings strongly supported
the proposed hypothesis 04. There is a positive impact of enhancing AI utilization in streamlining
business operations to compete in global e-commerce Platforms (Malhotra & Kharub, 2025).
Second, AI improved the area of supply chain management very effectively (Danach et al., 2024).
The consistently high loading values in supply chain management indicate the straight-strength
digital transformation. These findings reinforce the high worth of AI in navigating supply chain
complexities, particularly in developing economies like Pakistan, were infrastructural and
logistical challenges often hinder business performance (Sumbal et al., 2024). The analyzed data
also validated hypothesis 02 there is a positive impact of enhancing AI utilization in the Supply
Chain to compete in a global e-commerce platform. Positively Significant and accepted.
Interestingly when it comes to business operations, the relationship between streamlining business
operations and AI integration appears to be Multifaceted. Some items were not so strong but even
though they were statistically significant, some areas might still need improvement (Ryan, 2011).
The study confirms hypothesis 03. There is a Positively Significant impact of enhancing AI
utilization in Fraud Detection to compete with global e-commerce Platforms (Mehmood, Naseer,
& Chen, 2024). Moreover, in customer experience, most measurements show strong results that
indicate automated support had a positive effect. AI helps make customers more satisfied and
responsive. the research found hypothesis 01 that there is a strong emphasis the impact of
enhancing AI utilization in Customer experience to compete in a global e-commerce Platform
(Birch & Cochrane, 2022).
In conclusion, the study’s model and analysis confirmed that all statistical measurements used
were reliable and valid. The model showed good results, but some items still need more
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improvement of AI tools to make sure they continue to meet business goals (Canhoto & Clear,
2020). This study adds valuable insight into how AI can help businesses improve customer service,
manage supply chains better, detect fraud, and run more effectively and efficiently. Future research
may include more participants from different backgrounds, interviews, or focus groups to make the
results more applicable to a wider audience. Conducting a Long-Term Study and collecting data
over time can be measured to stay reliable and valid. The addition of new relevant topics like
Technology Adoption or User Satisfaction may improve the overall quality of the model. The
research study can more reliably remove weaker items or add stronger ones to process the model
better and more reliable results. As AI technology grows, Companies that strategically integrate AI
into their operations can succeed against competitors in e-industry and succeed in long-term
growth (Satish & Rao, 2023).

Limitation
The study examined that the sample size of respondents is small and specific, which means the
results may not cover all e-commerce platforms globally.in addition, this research study focused on
certain dimensions of AI in business functions such as customer experience, fraud detection,
supply chain management, and business operations, and data was collected only from a limited
geographic area or a specific demographic group. Some important areas like marketing
automation, accounting, data analytics were left over. This can create limitation of findings,
especially considering that e-commerce platforms vary greatly in terms of scale, infrastructure,
culture, economy, and consumer behavior across different countries. This research also used cross-
sectional data which means data was likely collected at one point in time, which poses other
limitations and might present an incomplete view of AI’s full potential. There is a chance that
participant may respond according to his personal experience, misunderstandings, or social
desirability rather than objective facts, which could affect the quality, effectiveness and efficiency
of the results. Further research is needed to build a more comprehensive and dynamic
understanding of AI’s role in reshaping global e-commerce platforms.
Moreover, it would be beneficial to involve a larger and more diverse group of participants from
different areas, countries, and regions to make the findings more significant and relate to the
current practical approach. This study could also examine the additional AI-driven in e-commerce
which has a strong influence on gaining a clear picture of AI advancement. Longitudinal research
would help to examine the broader role of artificial intelligence. Furthermore, comparing AI's role
in various e-commerce platforms such as Amazon, Alibaba, or Daraz could analyze different
outcomes and strategies, to understand the broader view of AI’s effectiveness in global
competition.

Future Direction
Future research on artificial intelligence in e-commerce plate form can explore a broader scope. A
cross-country comparative analysis will help understand differences in technology, regulatory
environments and customer behavior. However, longitudinal studies can explore AI’s impact on
business efficiency and competition in the market. Additionally, future studies examining AI
appliances such as voice shopping, augmented reality shopping, and efficient supply chains help to
understand their role in shaping the future of online retail.
Furthermore, quantitative approach methods with the use of expert interviews and focus group
discussions and questionnaires can provide a broader scope of the benefits and challenges of AI in
e-commerce. Topics like cybersecurity, data privacy, business smart performance in the context of
AI should be studied. Future research shows how artificial technology enhances digital literacy in

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countries where technology use is still growing. By addressing these aspects, future studies can
provide a more holistic understanding relating to AI appliances that will consistently change and
improve e-commerce worldwide.
To improve AI-driven expand their investigative scope include research in multiple academic,
regions, and industry sources to understand the diversification of global utilization of artificial
intelligence. Future research should focus on the ethical concerns of AI and ensure AI is used
responsibly. Another promising area for future research is how new technologies like AR, VR, and
block chain can improve shopping experiences on e - e-platforms. Lastly, future research should
also explore AI techniques in delivery and logistics challenges in developing countries, ensuring
that it benefits both businesses and consumers effectively.
With the utilization of artificial intelligence tools, e-commerce businesses should improve both
hedonic (enjoyable and engaging) and utilitarian (practical and efficient) service quality that can
help personalize shopping experiences, automated checkouts, faster catboats service, augmented
reality (AR) and virtual reality (VR) to create more efficient and effective shopping experiences.
Additionally, AI-driven sentiment analysis can improve customer engagement, build stronger
connections with customers, recommendation, business efficiency, which enables companies to
become more profitable, like global giants Amazon, Alibaba, eBay etc.

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