This report delves into the integration of Artificial Intelligence (AI) within the e-commerce landscape, examining how businesses like JB Hi-Fi are leveraging AI to enhance sales and user experience. The report discusses the importance of AI in e-business, including its ability to automate processes, improve customer service through chatbots, and analyze customer data. It explores specific applications such as virtual assistants, handling customer feedback, and the role of IoT in e-commerce. Furthermore, it analyzes the ethical considerations and the impact of AI on IT security and business intelligence. The report provides a comprehensive review of the functional areas of AI in e-business, offering recommendations and concluding with the transformative potential of AI for e-commerce businesses. The report also includes an overview of the case study that focuses on JB Hi-Fi's use of AI to improve its business model and customer experience.