Abstract:The digital landscape is rapidly reshaping under the influence of AI-powered cloud-based e-commerce platforms (PCEPs). These platforms leverage the transformative power of AI to personalize customer experiences, optimize pricing strategies, enhance security, and streamline operations, offering businesses a significant competitive edge. However, challenges surrounding data privacy, algorithmic bias, and potential job displacement raise crucial ethical questions regarding widespread AI adoption in e-commerce.This study delves into the untapped potential and ethical considerations of PCEPs, distinguishing itself by proposing practical strategies for responsible development and ethical implementation.Objectives: Investigate the transformative potential of PCEPs: Personalized product recommendations:Analyze effectiveness and potential bias. Dynamic pricing strategies:Explore impact on consumer fairness and market stability. Enhanced fraud detection:Evaluate accuracy and privacy implications. Optimized supply chain management:Assess efficiency gains and job displacement risks. Critically analyze the ethical considerations of AI in e-commerce: Data privacy:Assess current practices and develop mitigation strategies. Algorithmic bias:Identify potential sources and propose solutions for fairer decision-making. Job displacement:Evaluate impacts and propose reskilling initiatives. Propose comprehensive and practical strategies for responsible PCEP development and implementation: Transparency:Enhance user awareness and control over data usage. Fairness:Design AI systems to mitigate bias and uphold consumer rights. Accountability:Establish clear guidelines and oversight mechanisms for ethical AI development.Conclusion: While PCEPs offer a plethora of transformative benefits, their ethical implementation is paramount. By adhering to principles of transparency, fairness, and accountability, businesses can unlock the full potential of PCEPs while minimizing potential risks and shaping the future of online commerce in a sustainable and equitable manner