The exponential growth of online shopping has redefined the retail landscape, offering unprecedented convenience while simultaneously intensifying environmental challenges, including increased carbon emissions, packaging waste, and energy consumption. As a transformative force, artificial intelligence (AI) has demonstrated significant potential to address these sustainability concerns by revolutionizing operational efficiency and fostering environmentally conscious practices. This study investigates the multifaceted influence of AI in the context of sustainable e-commerce, with a particular focus on AI-driven personalization, supply chain optimization, and eco-friendly logistics. A mixed-methods approach was employed, combining qualitative case studies with quantitative data analysis to assess the environmental benefits and challenges of AI integration in online shopping. The research examines the implementation of AI-powered tools, such as carbon footprint calculators and real-time sustainability metrics, to evaluate their effectiveness in promoting consumer behavior changes toward environmentally sustainable products. Furthermore, the study explores the role of machine learning algorithms in streamlining supply chains to minimize waste and energy use, as well as optimizing last-mile logistics to reduce carbon footprints. Key findings underscore AI's transformative potential in aligning e-commerce practices with sustainability goals. However, challenges such as high implementation costs, concerns over data privacy, and consumer resistance to new technologies are highlighted as critical barriers. Through the lens of case studies and emerging trends, this research delineates actionable insights for stakeholders in the online retail ecosystem, aiming to balance innovation with environmental stewardship. By advancing understanding of AI's role in sustainable e-commerce, this paper contributes to the discourse on leveraging technology for environmental resilience. Future research directions emphasize the need for scalable AI solutions that integrate seamlessly into existing systems while addressing societal and ecological concerns.