Hybrid Agentic AI Architecture for Edge-Enabled E-Commerce

Abstract

The landscape of e-commerce has witnessed a transformative shift in consumer behavior, driven by the rise of digital technologies and online platforms. As online purchases increase at an alarming rate, fraudulent activity has become a major concern for retailers and consumers alike. The objective of this research is to investigate methods for detecting fraudulent online transactions using machine learning algorithms. This paper proposes a Hybrid Agentic AI Architecture (HSAA) for edge-enabled e-commerce that incorporates intelligent agents and cryptographic security to enable real-time, trustworthy transaction processing. The architecture uses world-model distillation to enable efficient inference on edge devices. HSAA was tested on several large data sets such as a balanced credit card fraud set containing 2,952 transactions. The system scored 96.6% in detecting fraud, indicating very low false positives and high specificity. Negotiation exercises on 400 independent interactions were successful in 59%, with an average discount of 14.2%, using 1,142 zero-knowledge proofs that were verified with 100% validity. Some of the operational performance highlights include a throughput of 585 transactions per second, an average latency of 1.56 milliseconds, and a 81.9% reduction in bandwidth through selective state transfer. The findings support the argument that HSAA is a strong, secure, and high-performance edge-based e-commerce architecture, combining accuracy, efficiency, and reliability. Within HSAA, fraud detection functions as one of the core decision agents, while negotiation and secure execution mechanisms provide the broader operational context for trustworthy edge commerce. The architecture provides a solid basis for future studies in adaptive and autonomous AI-driven commercial systems.