Purpose: This research aimed to ascertain how artificial intelligence (AI) is revolutionizing electronic markets, the associated benefits, and ethical issues. Design/Methodology/Approach: The methodology used in this study was a systematic review design, including the review of numerous scholarly articles on AI in e-commerce. In five academic bibliometric databases such as Scopus, Research Gate, Sage, Harvard Business Review, and Google Scholar, the articles that would serve the purposes of this study were sought. Keywords such as e-commerce, AI, sustainability, and ethics were used to search the related databases. Findings: The results demonstrated that AI in e-commerce has so many benefits, such as automation, customization, and efficiency. Artificial intelligence algorithms, through intelligent assistance and recommendation engines, also recommend how to optimize resources. Moreover, AI encourages logistics improvement relative to customer satisfaction. In addition, it is equally important for AI to help achieve sustainability by increasing the efficiency of resource consumption and promoting the circular economy. However, concerns about the misuse of AI due to biased algorithms, violations of data privacy, or loss of jobs call for the responsible use of AI tools and constraints on their manipulation during the development processes. Limitations: The study focused on modern literature primarily and missed key findings in some previous research works. In addition, the choice of databases and search keywords restricted the scope of assessment. Implications: Further research opportunities include a comprehensive literature assessment, user experience, real-world experiences, and case studies on the application of these knowledge areas, as well as a closer inspection of ethical frameworks across each domain mentioned in this paper, along with further technical coverage on the creation and use of artificial intelligence. Originality/Value: Specifically, this research will provide a broader understanding of how AI affects businesses and consumers in e-commerce. The research identifies both the positive and negative aspects of AI, thus helping in the responsible creation and deployment of AI technologies, furthering a thriving e-commerce market from an ethical perspective.