Artificial intelligence is a significant IT technology that has the potential to perform human interaction activities using computing systems and machines. E-commerce companies like Amazon, Myntra and other companies are using AI technology for handling business concerns and improving customer satisfaction by delivering proper products and services. This research provides a platform for reviewing the benefits and challenges of AI technology in e-commerce companies. The included literature review helped to include effective and reliable information in the research and managed research gaps. It may be concluded that AI technology has various benefits for e-commerce such as warehouse automation, improve business performance, customer satisfaction, and many more. However, AI technology requires larger costs, proper knowledge, or awareness in the workplace and leads to the rate of unemployment. The future research will describe applications of AI and machine learning in the e-commerce industry and will conduct a survey for obtaining primary data in the study.