The Impact of AI on Customer Engagement in Indian E-Commerce Companies: A Dynamic Capabilities Perspective


Authors : Mohammad Waled Kaled Al-Dalaeen; Dr. K. S. Lakshmi

Volume/Issue : Volume 10 - 2025, Issue 12 - December


Google Scholar : https://tinyurl.com/367nph8p

Scribd : https://tinyurl.com/5yk7n3tj

DOI : https://doi.org/10.38124/ijisrt/25dec933

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Abstract : The widespread adoption of artificial intelligence (AI) has radically changed the manner in which customers interact within e-commerce settings, especially in the up-and-coming digital markets. The present research is an empirical investigation of how the adoption of AI affects the level of customer engagement in the e-commerce firms of India. The conceptualization of the research is based on the Dynamic Capabilities Theory, according to which AI is viewed as a strategic digital capability that can make firms sense customer behavior, capture the opportunities of engagement, and reorganize digital interaction processes. The data under analysis is secondary panel data based on the annual reports and corporate disclosures of five large Indian e-commerce companies, during the years 2018-2023 using a quantitative research design. The study employs the method of panel regression to establish the impact of AI adoption on four important engagement measures, which include customer engagement rates, click-through rates, engagement response rates, and conversion rates. The findings indicate that artificial intelligence influences all the dimensions of engagement statistically and positively. In particular, the adoption of AI is being demonstrated to increase customer responsiveness, enhancing the stimulation of more interactions, boosting click-through behavior, and enhancing conversion. The validity of the estimated models and the reliability of the empirical findings are verified by the diagnostic and robustness tests. The study makes a contribution to the literature because it fills a big gap in the empirical research on the topic of AI-enabled customer engagement, especially in the framework of the emergent e-commerce markets.

Keywords : AI, Sales Performance, E-Commerce, Customer Engagement, Click-Through Rates, Conversion Rates, E-Commerce, India.

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The widespread adoption of artificial intelligence (AI) has radically changed the manner in which customers interact within e-commerce settings, especially in the up-and-coming digital markets. The present research is an empirical investigation of how the adoption of AI affects the level of customer engagement in the e-commerce firms of India. The conceptualization of the research is based on the Dynamic Capabilities Theory, according to which AI is viewed as a strategic digital capability that can make firms sense customer behavior, capture the opportunities of engagement, and reorganize digital interaction processes. The data under analysis is secondary panel data based on the annual reports and corporate disclosures of five large Indian e-commerce companies, during the years 2018-2023 using a quantitative research design. The study employs the method of panel regression to establish the impact of AI adoption on four important engagement measures, which include customer engagement rates, click-through rates, engagement response rates, and conversion rates. The findings indicate that artificial intelligence influences all the dimensions of engagement statistically and positively. In particular, the adoption of AI is being demonstrated to increase customer responsiveness, enhancing the stimulation of more interactions, boosting click-through behavior, and enhancing conversion. The validity of the estimated models and the reliability of the empirical findings are verified by the diagnostic and robustness tests. The study makes a contribution to the literature because it fills a big gap in the empirical research on the topic of AI-enabled customer engagement, especially in the framework of the emergent e-commerce markets.

Keywords : AI, Sales Performance, E-Commerce, Customer Engagement, Click-Through Rates, Conversion Rates, E-Commerce, India.

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Paper Submission Last Date
31 - December - 2025

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