Artificial Intelligence (AI) realisation on digital commerce revolutionised the way people interact, make decisions, and how they purchase things in general. The project is aimed at determining the impacts of AI-based systems, including recommendation engines, chatbots, and predictive personalization systems, on user trust, digital user experience (UX) and, by extension, conversion rates within the e-commerce context. The study shall be based on hybrid methodology, which consists of user experience test and analytics of behavioral data and sentiment analysis of online review and social network, i.e., three of the most popular e-commerce platforms Amazon, Flipkart, and D2C brands, built on Shopify. The results suggest that, when combined with transparency and explainability, AI interfaces can be a major boost to trust. Further, the ease of experience through AI-based item selection is positively correlated with fewer decisions on the one hand and overall involvement on the other. On average, conversion increases by 21 percent in the platforms with AI-based personalization than in the control environments that were without their interventions. It also detects the new risks that could also influence user trust in AI approaches, including the possible algorithmic bias and the apparent feeling of being under observation. The study provides practical recommendations to marketers, platform designers, and policymakers interested in implementing AI in a digital retail ecosystem in an ethical and productive manner.