Artificial Intelligence (AI) has emerged as a transformative technology in the e-commerce sector by enabling highly personalized shopping experiences. Through machine learning, predictive analytics, natural language processing, and recommendation systems, AI analyzes consumer behavior to deliver tailored product suggestions, dynamic pricing, and intelligent customer support. This paper examines the role of AI in enhancing personalization in e-commerce, explores the underlying technologies, evaluates its benefits and challenges, and discusses ethical and regulatory concerns. Findings from existing literature suggest that AI-driven personalization significantly improves customer engagement, satisfaction, and conversion rates (Mani, 2026; Hargunani, 2025). The study concludes that AI is central to the future of digital commerce, although issues related to privacy, bias, and implementation costs must be addressed.