From Personalization to Dynamic Pricing: AI Applications and Their Impact on E-Commerce Competitiveness

Abstract: The proliferation of artificial intelligence (AI) has accelerated the digital transformation of e-commerce by redefining consumer engagement, operational efficiency, and competitive dynamics. This study investigates the influence of AI applications on brand loyalty and sales performance through a comparative analysis of leading international and Turkish e-commerce firms, including Amazon, Alibaba, eBay, IKEA, Zalando, Hepsiburada, Trendyol, and LC Waikiki. Employing a qualitative case study methodology and content analysis of secondary data, AI-driven practices are examined across various domains, including personalized marketing, recommendation systems, chatbots, dynamic pricing, demand forecasting, and customer experience management. The findings demonstrate that AI substantially contributes to strengthening customer relationships, optimizing sales processes, and enhancing firm competitiveness by facilitating personalization and predictive capabilities. However, the analysis also identifies limitations and risks arising from unsuccessful applications, particularly those associated with algorithmic bias, over-personalization, privacy infringements, and deficiencies in user interface design. This research highlights both the strategic value and inherent challenges of integrating AI in e-commerce, suggesting that the responsible and customer-centric deployment of AI constitutes a critical determinant of sustainable competitive advantage in the contemporary digital economy.