Abstract
Artificial Intelligence (AI) is increasingly recognized as a transformative force reshaping the landscape of commerce and business management in the 21st century. This paper examines AI's strategic role in redefining traditional business models by enhancing operational efficiency, enabling intelligent decision-making and driving innovation across sectors. With the integration of technologies such as machine learning, natural language processing, predictive analytics, and robotic process automation, organizations are transitioning toward more agile, data-driven, and customer-centric approaches.In commerce, AI is revolutionizing the way businesses interact with consumers by personalizing shopping experiences, automating transactions, optimizing pricing, and detecting fraud in real-time. E-commerce platforms now utilize AI to analyze customer behavior, predict preferences, and deliver tailored content, leading to higher conversion rates and customer satisfaction. In the field of management, AI supports strategic planning, human resource optimization, risk management, and financial forecasting. It empowers managers with real-time insights, facilitates evidence-based decision-making, and automates routine administrative tasks, freeing up human resources for more creative and strategic roles. Despite these advancements, the integration of AI poses critical challenges, including data privacy concerns, algorithmic bias, high implementation costs, ethical dilemmas, and workforce displacement. The paper emphasizes the need for organizations to adopt responsible AI strategies that prioritize transparency, regulatory compliance, and continuous employee up skilling. Drawing on a comprehensive review of current literature and real-world applications, this study concludes that AI is no longer a supportive tool but a strategic enabler of competitive advantage. Organizations that embrace AI with foresight and ethical responsibility are better positioned to thrive in an increasingly digital and dynamic business environment.