This study examines how Artificial Intelligence (AI) technologies influence e-commerce innovations in developing countries, specifically within the Southern African Development Community (SADC) region. E-commerce in the southern African countries is constrained by low levels of infrastructure and digital prowess and consumer trust, and artificial intelligence technologies offer new ways for businesses to streamline processes, improve customer engagement, and increase security. This study looks into the use of AI technologies such as chatbots, recommendation engines, fraud detection systems, and predictive analytics in e-commerce in the SADC region, taking into account their situational context. Qualitative data obtained through interviews with e-commerce entrepreneurs and managers was combined with quantitative data from surveys on the adoption, perceived benefits, and challenges of AI to create a mixed-methods design. The most salient findings suggest that there is still uneven use of AI technologies across the SADC countries. At the same time, it was observed that most established firms are realizing substantial improvements on customer service and operational productivity. Smaller firms, however, grapple with challenges such as high costs, lack of technical know-how, and inadequate data. As the study reveals, Artificial Intelligence (AI) has considerable promise to enhance the growth of e-commerce in developing countries, specifically in the SADC region. However, targeted implementation policies are needed to bridge gaps in digital literacy at all levels, infrastructure, consumer and business education, and provide a regulatory framework that nurtures AI development while safeguarding privacy and security of data. Other suggestions emphasize the need for government-backed initiatives which focus on broadband expansion, AI training programs, and regionally collaborative knowledge hubs for stakeholders in e-commerce.
Cite this paper
Chiutsi, A. T. and Mafukidze, B. S. (2025). Analyzing the Impact of Al on E-Commerce Business in Developing Countries: A Case Study of the SADC Region. Open Access Library Journal, 12, e3604. doi: http://dx.doi.org/10.4236/oalib.1113604.
Li, G. and Zhang, H. (2024) The Efficiency and Challenges of E-Commerce Logis-tics in Enhancing Market Access for Agricultural Products in Rural China. Law and Economy, 3, 31-43.
Senyo, P.K., Gozman, D., Karanasios, S., Dacre, N. and Baba, M. (2023) Moving Away from Trading on the Margins: Economic Empowerment of Informal Businesses through FinTech. Information Systems Journal, 33, 154-184.
Chivunga, M. and Tempest, A. (2022) Digital Dis-ruption in Africa: Mapping Innovations for the AfCFTA in Post-COVID Times. South African Institute of International Affairs.
Maghfirah, P. and Eni, Y. (2024) The Impact of Artificial Intelligence (AI) Adoption on the Productivity of Small and Medium Enterprises (SMEs) Industries in Indonesia: High Cost, Lack of Knowledge, and Inadequate Infrastructure as Mediation Variables. Interna-tional Journal of Business Management and Economic Review, 7, 128-145. https://doi.org/10.35409/ijbmer.2024.3584
Shah, W. and Badi, S. (2021) AI and Big Data Integration for Intelligent Supply Chain Optimization: Boosting Efficiency in Ecommerce Operations. https://doi.org/10.13140/RG.2.2.20216.46087.
Alice, S.I. and Ebuka, O.D. (2024) The Potential and Challenges of AI Adoption in Marketing Across Africa: Opportunities for Digital Transformation. Business and Investment Review, 2, 1-10.
Otozi, U.J., Ephraim, B., Yinka, A.I. and Hyginus, M.C. (2024) Cybercrime and Its Negative Effects in Developing Countries. IOSR Journal of Mobile Computing & Application, 11, 10-16. https://doi.org/10.9790/0050-11041016
Hilal, W., Gadsden, S.A. and Yawney, J. (2022) Financial Fraud: A Review of Anomaly Detection Techniques and Recent Advances. Expert Systems with Applications, 193, Article ID: 116429. https://doi.org/10.1016/j.eswa.2021.116429
Zuboff, S. (2022) Surveillance Capitalism or Democracy? The Death Match of Institutional Orders and the Politics of Knowledge in Our Information Civilization. Organization Theory, 3, 1-79. https://doi.org/10.1177/26317877221129290
Kuteyi, D. and Winkler, H. (2022) Logistics Challenges in Sub-Saharan Africa and Op-portunities for Digitalization. Sustainability, 14, Article 2399. https://doi.org/10.3390/su14042399
Krause, S., Panchal, B.H. and Ub-he, N. (2025) Evolution of Learning: Assessing the Transformative Impact of Generative AI on Higher Education. Frontiers of Digital Education, 2, Article 21.
Salle, S. and Rini, W.S.D. (2025) Development of Artificial Intel-ligence Regulations and Implications for Intellectual Property Rights Protection. Contemporary Issues on Indonesian Social Justice and Legal Reform, 1, 58-77.
Sharma, A.K. and Sharma, R. (2024) Comparative Analysis of Data Protection Laws and AI Privacy Risks in BRICS Nations: A Comprehensive Ex-amination. Global Journal of Comparative Law, 13, 56-85.
Jasanoff, S. (2020) Imagined Worlds: The Politics of Future-Making in the Twenty-First Century. In: Wenger, A., Jasper, U. and Cavelty, M.D., Eds., The Politics and Science of Prevision, Routledge, 27-44. https://doi.org/10.4324/9781003022428-4
Aderibigbe, A.O., Ohenhen, P.E., Nwaobia, N.K., Gidiagba, J.O. and Ani, E.C. (2023) Artificial Intelligence in Developing Countries: Bridging the Gap Between Potential and Implementation. Computer Science & IT Research Journal, 4, 185-199. https://doi.org/10.51594/csitrj.v4i3.629
Hargittai, E. (2018) The Digital Reproduction of Inequality. In: Grusky, D. and Szelenyi, S., Eds., The Inequality Reader, Routledge, 660-670. https://doi.org/10.4324/9780429494468-69
Otarinia, M.A. (2024) The Impact of E-Commerce and Foreign Investment on Eco-nomic Growth in Devel-oping Countries. Creative Economy and New Business Management Approach-es, 2, 18-59.
Ahi, A.A., Sinkovics, N. and Sinkovics, R.R. (2022) E-Commerce Policy and the Global Economy: A Path to More Inclusive Devel-opment? Management International Review, 63, 27-56. https://doi.org/10.1007/s11575-022-00490-1
Iyelolu, T.V., Agu, E.E., Idemudia, C. and Ijomah, T.I. (2024) Driving SME Innovation with AI Solutions: Overcoming Adoption Barriers and Future Growth Opportunities. International Journal of Science and Technology Research Archive, 7, 36-54. https://doi.org/10.53771/ijstra.2024.7.1.0055
Ali, H. and Hajjar, L. (2024) Empowering SMEs with AI and Digital Transformation: A Roadmap to Enhanced Competitiveness and Growth. https://doi.org/10.13140/RG.2.2.20921.38245
Mazzucato, M. (2024) The Inclusive Entrepreneurial State: Collective Wealth Creation and Distribu-tion. Oxford Open Economics, 3, i1031-i1039. https://doi.org/10.1093/ooec/odad101
Fazil, A.W., Hakimi, M. and Sha-hidzay, A.K. (2024) A Comprehensive Review of Bias in AI Algorithms. Nusan-tara Hasana Journal, 3, 1-11. https://doi.org/10.59003/nhj.v3i8.1052
Davis, F.D. (1993) User Ac-ceptance of Information Technology: System Characteristics, User Perceptions and Behavioral Impacts. International Journal of Man-Machine Studies, 38, 475-487.
Perez, C. (2009) Technological Revolutions and Tech-no-Economic Paradigms. Cambridge Journal of Economics, 34, 185-202. https://doi.org/10.1093/cje/bep051
Cohen, W.M. and Levin-thal, D.A. (1990) Absorptive Capacity: A New Perspective on Learning and In-novation. Administrative Science Quarterly, 35, 128-152. https://doi.org/10.2307/2393553
Barney, J. (2001) Resource-Based Theories of Competitive Advantage: A Ten-Year Retrospective on the Re-source-Based View. Journal of Management, 27, 643-650. https://doi.org/10.1016/s0149-2063(01)00115-5
Al-Surmi, A., Bashiri, M. and Koliousis, I. (2022) AI Based Decision Making: Combining Strategies to Improve Operational Performance. Interna-tional Journal of Production Research, 60, 4464-4486.
Thakur, S., Sand-hu, S. and Yehuwalashet, F. (2024) E-Commerce and Trade: The Role of Artifi-cial Intelligence. In: Garg, V., Goel, R., Tiwari, P. and Döngül, E.S., Eds., Hand-book of Artificial Intelligence Applications for Industrial Sustainability, CRC Press, 232-248. https://doi.org/10.1201/9781003348351-16
Kitsara, I. (2022) Artificial Intelligence and the Digital Divide: From an Innovation Per-spective. In: Bounfour, A., Ed., Platforms and Artificial Intelligence, Springer, 245-265. https://doi.org/10.1007/978-3-030-90192-9_12
Vishal Kumar Seshagirirao Anil, and Adeoluwa Bennard Babatope, (2024) The Role of Data Governance in Enhancing Cybersecurity Resilience for Global Enterprises. World Journal of Advanced Research and Reviews, 24, 1420-1432. https://doi.org/10.30574/wjarr.2024.24.1.3171
Animashaun, E.S., Familoni, B.T. and Onyebuchi, N.C. (2024) Implementing Educational Technol-ogy Solutions for Sustainable Development in Emerging Markets. International Journal of Applied Research in Social Sciences, 6, 1158-1168. https://doi.org/10.51594/ijarss.v6i6.1177
Al Hadwer, A., Tavana, M., Gillis, D. and Rezania, D. (2021) A Systematic Review of Organizational Factors Impacting Cloud-Based Technology Adoption Using Technolo-gy-Organization-Environment Framework. Internet of Things, 15, Article ID: 100407.
Fu, X. and Shi, L. (2023) Direction of Innovation in Developing Countries and Its Driving Forces. SSRN Electronic Journal, 1-41. https://doi.org/10.2139/ssrn.4422271
Berry, K. and Singh, A. (2024) AI-Driven Service Marketing: Transforming Customer Experience and Opera-tional Efficiency. In: Nadda, V., Tyagi, P.K., Singh, A., and Singh, V., Eds., Ad-vances in Hospitality, Tourism, and the Services Industry, IGI Global, 35-56. https://doi.org/10.4018/979-8-3693-7909-7.ch003
James, J. (2020) Confronting the Scarcity of Digital Skills among the Poor in Developing Coun-tries. Development Policy Review, 39, 324-339. https://doi.org/10.1111/dpr.12479
Sarala, R.M., Post, C., Doh, J. and Muzio, D. (2025) Advancing Research on the Future of Work in the Age of Arti-ficial Intelligence (AI). Journal of Management Studies, 62, 1863-1884. https://doi.org/10.1111/joms.13195
Anozie, U.C., Onyenahazi, O.B., Ekeocha, P.C., Adekola, A.D., Ukadike, C.A. and Oloko, O.A. (2024) Advancements in Artificial Intelligence for Omnichannel Marketing and Customer Service: Enhancing Predictive Analytics, Automation, and Operational Efficiency. International Journal of Science and Research Archive, 12, 1621-1629. https://doi.org/10.30574/ijsra.2024.12.2.1436
