AI has become central to e-commerce, becoming the source of essential functions such as dynamic pricing and product ranking, fraud detection, and customer support. However, this deep integration introduces systemic legal risks that challenge traditional commercial law frameworks. This study looks at these complexities, which include data protection, deceptive design, bias in the algorithms, and product safety in the light of EU law, US enforcement, and the NIST AI Risk Management Framework. The study claims that harms associated with AI must cease to be perceived as singular technical malfunctions, but as a set of threats to consumer freedom, market justice, and contractual reliability. Among the main challenges to note are the jurisdictional complexity, the asymmetry of evidence, and the high lifecycle governance standards as required by the EU AI Act (European Union, 2024; Yaşar, 2024).To avoid these risks, the article recommends proportionate governance to technological avoidance. The most important compliance controls are AI inventories, data mapping, pre- and post-deployment testing, vendor audit rights and human escalation pathways .The identification with the Personal Data Protection Law (PDPL), SDAIA regulations, and the Saudi E-Commerce Law are crucial in the broader Saudi context. Placing local needs in the context of global best practices, platforms can help reduce the litigation risk and increase consumer confidence, which directly supports the digital transformation objectives of Saudi Vision 2030 (European Union, 2024; Saudi Data & Artificial Intelligence Authority [SDAIA], 2023).