This paper investigates how artificial intelligence (AI) and machine learning (ML) optimise e-marketing strategies by enhancing consumer engagement and business value. We analyse applications such as recommender systems, chatbots, and sentiment analysis, alongside challenges including data privacy, algorithmic bias, and ethical concerns. The study synthesises literature to propose best practices for marketers, emphasising transparency, human oversight, and adaptive strategies in AI-driven campaigns. Findings highlight the need for balanced automation and ethical governance to sustain consumer trust in digital markets.