Generative AI in E-commerce: a literature review of current applications, gaps and future directions

Abstract

Purpose – This study systematically investigates the integration of Generative Artificial Intelligence (GenAI) in the e-commerce sector to enhance customer interactions, optimize business operations and support decision-making processes across online platforms. Design/methodology/approach – A comprehensive search of the Web of Science, Scopus and Google Scholar identified 52 empirical research articles published between 2022 and 2025 that met the predefined inclusion criteria. Findings – The review categorizes the selected studies according to their research methodologies and data collection techniques. Major areas of GenAI application include: (1) enhancing customer purchase intention and experience; (2) implementing GenAI-driven optimization strategies; (3) supporting business decision-making; (4) improving information retrieval; (5) enabling GenAI-driven advertising; and (6) developing GenAI implementation strategies. Findings also highlight theoretical models and their predictive factors, which play a significant role in explaining the effectiveness of GenAI applications in e-commerce. In addition, challenges and future research directions related to GenAI integration are identified. Practical implications – The study offers actionable insights for e-commerce practitioners by guiding the effective integration of GenAI into business strategies. By understanding the current trends, theoretical models and key predictive factors, organizations can enhance operational efficiency and decision-making. Originality/value – This study offers a novel synthesis of GenAI applications in e-commerce, focusing on empirical research published between 2022 and 2025. By systematically categorizing prior studies, it offers a structured overview of GenAI's impact across various e-commerce functions. The inclusion of theoretical models and their predictive factors further enriches the understanding of GenAI's effectiveness in real-world e-commerce contexts. This study enriches the literature and delivers actionable guidance for practitioners to apply GenAI in boosting customer engagement and operational efficiency.