The exponential evolution of computing technology is responsible for the massive change in practices and behavior. Artificial Intelligence (AI) is one of the fastest growing computing technologies which have remarkable contribution in transforming business practices and customer experience. However, it is at infancy stage and therefore its application in various industries is in early stage. Research on AI and its application is growing across the World but the existing literature is largely fragmented. To reach on a conclusion or to understand AI application a systematic review is essential. This study synthesizes research on artificial intelligence in electronic commerce. The systematic analysis approach along with extensive review of literature is utilized. A total of 170 literatures were analyzed and out of it 106 are reviewed. The study describes the status quo of AI technology and its role in modernizing e-commerce. The present study begins with introduction of study consisting need of the study, gap in the literature, Artificial intelligence and its prospects, aims of conducting the systematic literature review followed by methodology adopted in the current study. The next part of the study highlights AI and its subsets, e-commerce and application of AI in different e-commerce operations. The study describes how the element of personalization and human touch can be restored in e- commerce using AI. At last discussion, conclusion, future research and limitations of the study are presented. The study identified prominent themes that could be the area of interest for many researchers and academicians. The outcome of the study will bring new dimensions of AI application in e-commerce.