Artificial Intelligence in E-Commerce: A Comparative Study of AI-Driven Innovations in Amazon and Daraz within the Pakistani Market

Abstract

The study investigates the strong influence of artificial intelligence on reshaping the e-commerce platform in Pakistan. The global e-commerce industries use several artificial techniques to promote their business for profitability. This research paper explores a comparative analysis of the global leading e-commerce website Amazon and the local South Asian website Daraz. The study also attempts to analyze the level of AI utilization tools in customer experience, streamlining business operations, fraud detection, and supply chain management. By using convenience sampling techniques, 400 questionnaires were distributed, out of which 345 were received back. Only 315 responses were deemed valid for analysis. The study analyzed the data analyzed with SmartPLS. The 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.