This conceptual paper explores the transformative impact of Artificial Intelligence (AI) on e-commerce business management, focusing on operational efficiency and customer experience. It synthesizes foundational theories of technology adoption, operational optimization, and customer relationship management with emerging AI capabilities such as machine learning and natural language processing. The paper proposes a conceptual framework illustrating how AI-driven operational models improve resource management, streamline logistics, automate customer service, and enable personalized shopping experiences. The study highlights strategic considerations for SMEs to successfully implement AI technologies while addressing challenges related to data security, workforce skills, and ethical use. This paper aims to provide a comprehensive theoretical foundation for researchers and practical guidance for e-commerce SMEs, enabling them to harness AI's potential for sustained competitive advantage in the evolving digital marketplace.