Privacy Issues in AI and Cloud Computing in E-commerce Setting: A Review

Abstract

The proliferation of AI and cloud computing in e-commerce has brought numerous advantages, such as enhanced customer experience and operational efficiency. However, these technological integrations come with a host of privacy concerns that warrant in-depth examination. On the AI front, concerns range from invasive data collection and analysis to the obscurity of algorithmic decision-making processes. Additionally, there is the potential for bias in AI systems that may perpetuate societal stereotypes. Surveillance and the trade-off between personalization and privacy also come into play. Automated customer services, such as chatbots, present another layer of concern as they might store sensitive customer conversations. Cloud computing, a backbone of many e-commerce platforms, presents its own set of challenges. These include the risk of data breaches, ambiguities in data ownership and control, and complications related to data transfer and storage, especially across international borders. The use of third-party cloud services can introduce vulnerabilities if these services lack stringent security measures. Additionally, encryption practices can sometimes be inadequate, leaving data susceptible to unauthorized access. Finally, ensuring compliance with varied international regulations concerning data storage adds another layer of complexity. This review aims to provide an exhaustive overview of these privacy issues, highlighting the need for robust frameworks and solutions to mitigate risks. By understanding these concerns in detail, stakeholders in the e-commerce industry can better prepare for challenges and safeguard customer data, thereby reinforcing trust and long-term engagement.