Transformative Potential and Ethical Challenges of Generative AI in E-Commerce: Data Bias, Algorithm Bias

Abstract

This chapter depicts how generative AI can redefine the e-commerce industry through enhanced personalised experience, dynamic pricing, and operational efficiency. However, the chapter also illustrates how generative AI can be accompanied by problems in terms of biases and ethical challenges. This chapter discusses ways to uncover, tackle, and prevent bias in AI systems to ensure that no customers are discriminated against. The chapter highlights the necessity of accountability, transparency, and robust privacy standards in AI decision-making to win over users and uphold ethical standards. Generative AI development is expected to become increasingly important when used with decision-making accountability. In this way, Generative AI can promote justice, uphold trust, and achieve sustainable digital economy growth as e-commerce develops. As the e-commerce industry grows, generative AIs can ensure fairness, restore confidence, and drive sustainable development.