AI as an Enabler of E-Commerce Ecosystem: Overcoming Barriers for Local Entrepreneurs
Monika Mahadev Jogdand, College- Dr. D. Y. Patil Arts, Commerce & Science College Pimpri
Contact- 8805799521, Email ID- jogdandmonika95@gmail.com
Dr. Thomson Varghese, College- Shree Chanakya Education Society, Indira College of Commerce & Science Pune, Contact- 97668 30591, Email.ID- thomson.varghese@iccs.ac.in
Abstract
The rapid growth of e-commerce has created unprecedented opportunities for local entrepreneurs, yet several barriers hinder their effective participation. This study explores how Artificial Intelligence (AI) acts as an enabler in overcoming critical challenges—digital literacy gaps, financial constraints, awareness deficits, infrastructural limitations, and trust concerns—that restrict local entrepreneurs from leveraging the digital economy. The purpose of this research is to synthesize existing secondary data to evaluate AI’s role in fostering inclusivity, reducing operational complexities, and building resilience for small-scale businesses in developing contexts such as India.
A systematic review of literature, including peer-reviewed studies, institutional reports, and global case studies, was conducted. Sources from Kaplan & Haenlein (2019), Sharma & Patel (2023), Chatterjee (2020), Gupta & Arora (2022), Kumar & Dixit (2021), PwC (2021), Accenture (2022), and World Bank (2022) were analyzed. The methodology focused on thematic analysis to identify patterns of AI intervention across the five dimensions of entrepreneurial barriers.
Findings reveal that AI significantly lowers the entry barriers posed by digital illiteracy by providing intuitive interfaces such as chatbots and vernacular voice assistants, enabling entrepreneurs from non-English backgrounds to participate effectively. In addressing financial barriers, AI-driven fintech solutions offer innovative credit scoring mechanisms and low-cost transaction systems that promote financial inclusion. Regarding awareness deficits, AI-powered analytics and recommendation engines serve as both decision-making and educational tools, gradually increasing entrepreneurs’ knowledge of e-commerce. Similarly, infrastructural challenges are mitigated through AI-enabled supply chain optimization, predictive analytics, and warehouse automation, which enhance efficiency despite weak logistics. Finally, AI contributes to trust-building through fraud detection, blockchain integration, and enhanced data security measures, thereby fostering consumer confidence in local entrepreneurs’ platforms.
The study concludes that AI is not merely a supportive tool but a transformative enabler of digital empowerment for local entrepreneurs. By bridging gaps in skills, finance, awareness, infrastructure, and trust, AI creates a more equitable e-commerce ecosystem. However, its long-term impact depends on policy support, accessibility of AI technologies, and training initiatives that equip entrepreneurs to harness AI sustainably. Future research should explore empirical assessments of AI adoption among grassroots entrepreneurs and evaluate the socio-economic outcomes of AI integration in local e-commerce.
Keywords: Artificial Intelligence (AI),E-Commerce Ecosystem, Local Entrepreneurs, Digital Empowerment, Entrepreneurial Barriers, Inclusive Growth.
DOI link – https://doi.org/10.69758/GIMRJ/2509I9VXIIIP0072
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