With the rapid development of internet technology and the increasing popularity of e-commerce, data encryption technology plays a very important role in data security. Information security has two aspects: security protocol and cryptographic algorithm and the latter is the foundation and core technology of information security. Advanced Encryption Standard (AES) encryption algorithm is one of the most commonly used algorithms in symmetric encryption algorithms. Such algorithms face issues when used in the context of key management and security functions. This paper focuses on the systematic analysis of these issues and summarizes AES algorithm implementation, comprehensive application and algorithm comparison with other existing methods. To analyze the performance of the proposed algorithm and to make full use of the advantages of AES encryption algorithm, one needs to reduce round key and improve the key schedule, as well as organically integrate with RSA algorithm. Java language is used to implement the algorithm due to its large library, then to show the efficiency of the proposed method we compare different parameters, such as encryption/decryption speed, entropies and memory consumption...) with a classic algorithm. Based on the results of the comparison between AES and the hybrid AES algorithm, the proposed algorithm shows good performance and high security. It therefore can be used for key management and security functions, particularly for sharing sensitive files through insecure channel. This analysis provides a reference useful for selecting different encryption algorithms according to different business needs.