Exploring the Adoption of Free Artificial Intelligence in E-Commerce Platforms: An Organizational and Customer-Centric Driver Strategically Shaping the Clothing Industry

The rapid integration of freemium AI tools is shaping how clothing industries streamline their operations and engage with customers online. In emerging markets like the Philippines, SMEs face several challenges due to limited resources, consumer demands, and the fast pace of digitalization. This study investigates the effects of freemium AI on organizational efficiency and customer engagement strategies among all clothing e-commerce industries within Bulacan, with the use of Dynamic Capabilities Theory, it examines how enterprises sense opportunities, utilize digital resources, and transform processes. A qualitative research design was employed, utilizing in-depth interviews with 15 registered clothing business owners with at least three years of operational history. Findings reveal that free AI tools improve centralized management, targeted advertising, content creation, and communication, which significantly enhance both operational efficiency and customer satisfaction. Despite challenges, the study highlights that free AI tools serve as scalable, accessible, and democratizing resources for digital transformation. The study concludes that strategic adoption of free AI tools not only strengthens business performance but also promotes inclusive and sustainable growth in the global clothing e-commerce.