Innovation is crucial for maintaining a competitive edge and delivering exceptional shopping experiences in the ever-evolving realm of e-commerce. Businesses continuously seek creative approaches to enhance the e-commerce landscape, incorporating technologies like immersive experiences, seamless payment solutions, Artificial Intelligence (AI), and personalized services. This study investigates the emerging technologies and innovations within e- commerce, particularly focusing on the application and impact of AI. Utilizing conceptual research methodology and secondary data from various scholarly articles, journals, and online sources, the study concludes that recent innovations such as AI-driven personalization, Augmented Reality (AR) and Virtual Reality (VR), chatbots, blockchain for transaction security and supply chain management, social commerce, drone delivery, and e-wallet solutions have significantly advanced the e- commerce sector. Noteworthy AI applications include platforms like Google AI Cloud Platform, IBM Watson, BigML, and Infosys Nia, which are also leveraged for product pricing and distribution strategies. Additionally, the adoption of diverse payment methods such as e- wallets and UPI contributes to enhancing user satisfaction in e-commerce transactions.