The rapid growth of e-commerce has led to an overwhelming volume of customer feedback, from product reviews to service interactions. Extracting meaningful insights from this data is crucial for businesses aiming to improve customer satisfaction and optimize decision-making. This paper presents an AI-driven sentiment analysis system designed specifically for e-commerce applications, balancing accuracy with interpretability. Our approach integrates traditional machine learning techniques with modern deep learning models, allowing for a more nuanced understanding of customer sentiment while ensuring transparency in decision-making. Experimental results show that our system outperforms standard sentiment analysis methods, achieving an accuracy of 89.7% on diverse, large-scale datasets. Beyond technical performance, real-world implementation across multiple e-commerce platforms demonstrates tangible improvements in customer engagement and operational efficiency. This study highlights both the potential and the challenges of applying AI to sentiment analysis in a commercial setting, offering insights into practical deployment strategies and areas for future refinement.