A Study on the Role of Artificial Intelligence in E-Commerce and Its Cyber Law Implications
TL;DR
A comprehensive, risk-calibrated legal framework, incorporating algorithmic transparency obligations, strengthened data protection, clear liability rules and ethical governance principles, is essential to reconcile technological innovation with the protection of consumer rights and constitutional privacy guarantees in the digital marketplace.
Abstract
Artificial Intelligence (AI) has emerged as a defining force in the transformation of electronic commerce, enabling businesses to analyze consumer behaviour, personalize recommendations, detect fraud, automate logistics and set dynamic prices with unprecedented speed and scale. While this integration has generated substantial economic efficiency and consumer convenience, it has simultaneously created regulatory and ethical challenges that existing legal frameworks were not originally designed to address. This study examines the role of Artificial Intelligence in e-commerce and analyzes its implications under Indian cyber law, with particular attention to data privacy, algorithmic transparency and bias, cybersecurity, automated decision-making liability, consumer protection and cross-border jurisdiction. Adopting a qualitative, doctrinal-cum-analytical research design, the study draws on statutory provisions, including the Information Technology Act, 2000, the Consumer Protection Act, 2019, the Digital Personal Data Protection Act, 2023 and the Competition Act, 2002, alongside landmark judicial pronouncements such as *Justice K.S. Puttaswamy (Retd.) v. Union of India*, *Shreya Singhal v. Union of India*, *Anvar P.V. v. P.K. Basheer* and *Google India Pvt. Ltd. v. Visaka Industries*, together with comparative international instruments such as the European Union's Artificial Intelligence Act and the General Data Protection Regulation. These materials are examined through qualitative thematic analysis. The findings indicate that India's cyber law framework provides only partial and fragmented regulation of AI-driven e-commerce, with significant gaps in algorithmic accountability, liability allocation for autonomous decisions and cross-border enforcement. The study concludes that a comprehensive, risk-calibrated legal framework, incorporating algorithmic transparency obligations, strengthened data protection, clear liability rules and ethical governance principles, is essential to reconcile technological innovation with the protection of consumer rights and constitutional privacy guarantees in the digital marketplace.