This paper thoroughly examines strategic innovations in data security constructed on artificial intelligence (AI) and machine learning (ML) with the escalation in cyber-attacks and data breaches, thus a need for more advanced methods of protecting sensitive data. AI and ML emerged as crucial technologies for enhancing data security architecture. The investigator centered and focused on exploring the importance, challenges, and potential future developments of strategic improvements in AI and ML-based data security. The outcomes indicate significant potential for imminent study and development in integrating strategic innovation in AI and ML into data security systems. Results from the survey revealed that with the recent data, 35% of organizations globally use AI in their operations, and 42% of companies have reported exploring the use of AI within their operations. Also, by 2024, over 50% of businesses intend to use AI technologies. More than 77% of companies now use AI in their data security operations or are considering doing so. This indicates that over 250 million businesses use or investigate AI. The study aimed to examine strategic advances in AI and ML that can effectively prevent the increasing cyber threats to e-commerce platforms. It analyzed the usage of AI and machine learning to improve fraud detection and prevention measures for e-commerce. By leveraging intelligent algorithms, businesses can protect themselves and their customers, detect dishonest activity in real time, and take aggressive risk mitigation actions.