THE APPLICATION OF ARTIFICIAL INTELLIGENCE IN E-COMMERCE IN UKRAINE: TRENDS, CHALLENGES, SIMULATION MODELS

Introduction. Today, artificial intelligence (AI) is becoming a key technology that is transforming various areas of life, including e-commerce. The use of AI in this field opens up new opportunities for businesses, significantly enhances efficiency, improves user experience, and allows for the automation of many aspects, including inventory management, personalized offerings, data analysis, and customer service, which greatly boosts efficiency, reduces costs, and enhances customer interactions. However, alongside the benefits of AI come risks and threats that need to be considered. This requires new research, careful analysis of the role of AI, and restricting access to the databases it works with. The aim of the research is to identify the directions for the use of artificial intelligence in e-commerce, highlight and justify the threats and obstacles in this process, and propose suggestions for collaboration between AI and e-commerce professionals. To achieve this goal, the following questions should be addressed: 1. Examine which AI technologies and tools are currently used in e-commerce, their capabilities, and limitations. 2. Assess the benefits and outcomes of implementing AI, and determine how it impacts the efficiency of business processes and other aspects of e-commerce. 3. Investigate potential threats such as data privacy issues, high technology costs, and challenges in integrating new systems. 4. Identify the needs of e-commerce companies for the successful implementation of AI, as well as the challenges they face. 5. Explore how AI integration will affect the labor market in e-commerce. Materials and Methods. The materials for the research include: 1) works by domestic and international authors conducting scientific and practical research in the field of artificial intelligence in electronic commerce; 2) the practical experience of the authors in managing e-commerce. The following scientific methods were used in the research: 1) comparative; 2) generalization and grouping; 3) empirical; 4) statistical analysis; 5) forecasting; 6) modeling. Results. The paper examines the role of artificial intelligence (AI) in the development and transformation of e-commerce. It discusses the main areas of AI application, such as personalization of purchases, automation of customer service, inventory management, and data analytics. The advantages of AI integration are analyzed, including improved efficiency of business processes, enhanced customer interaction, and optimized marketing strategies. At the same time, attention is drawn to potential risks faced by companies when implementing AI, such as possible increases in market inequality and unemployment due to automation. Through a detailed review of key aspects, opportunities, obstacles, and potential threats, the paper provides a comprehensive analysis of how AI could change the e-commerce landscape and what factors need to be considered for the successful implementation and use of this technology. It also emphasizes the importance of adaptability and readiness for change at both the enterprise and policy levels to maximize the benefits of AI and minimize negative impacts on business and society. Prospects. Further research is recommended to extend the study of artificial intelligence applications in e-commerce to other sectors of the economy, including education, industry, agriculture, and more, to determine where and how AI can be used, what potential threats it may pose, and how to address them.