Al The Dark Side of Artificial Intelligence in Retail Innovation (original) (raw)
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2021
The aim of this study is to identify the practical benefits and associated risks generated by the implementation of artificial intelligence (AI) in retail and capitalize on the results by developing a conceptual framework for integrating AI technologies in the information systems of retail companies. To this end, a systematic study of recent literature was conducted by carefully examining the topic of AI implementations. The main results of the documentation were used to substantiate the conceptual framework introduced by the paper. The research revealed a variety of advanced solutions, benefits, but also risks that AI generates in retail, in different segments of the value chain, abbreviated CECoR, from improving the customer experience (Customer Experience, CE) with the help of virtual agents (chatbots, virtual assistants, etc.), to cost reductions (Cost, Co) by using smart shelves, and to increasing revenues (Revenue, R) due to product recommendations and personalized offers or d...
2021
The purpose of this paper is to investigate the impact of the use of Artificial Intelligence in retail on buying and consumer behavior, better understanding how consumers perceive Artificial Intelligence on the path to the Next Normal. The consumer-technology partnership is confirming the reinvention of the retail organizations, retailers' advancement on this path involving acting on the new patterns and behaviors by considering the new technology adoption within the context of COVID-19. Based on a comprehensive literature review on the impact of Artificial Intelligence in retail a quantitative research design was employed to demonstrate the nature of linkage between this impact and consumers' perceptions of Artificial Intelligence. The data collection was performed through survey conducted in a supermarket chain in Romania, consumers' perceptions of Artificial Intelligence being considered a central metric for assessing the successful use of Artificial Intelligence-enabled interactions within the context of the offline-online convergence confirmed by the Store of the Future, and consumers' use of mobile phones in their Omni channel shopping journey. The present research, whose results were validated, offers retailers deep consumer insights with regard to the buying and consumer behavior change in Romania on the path to the Next Normal.
Impact of AI on Businesses of Organised Retailers
The Third Concept, 2022
In recent years, Artificial Intelligence (AI) has evolved into one of the most powerful technologies in tech history for bringing machines and humans together. The expanding use of AI techniques in our daily lives has made it a priority for businesses to incorporate AI in their business operations. The present study intends to encourage the organised retailers to adopt and integrate AI tools and techniques in their business activities to survive in a competitive business world, by analysing the role of the adoption of AI techniques in improving their business performance. In this regard, the study used a questionnaire-based survey method to collect data from the organised retailers in the state of Uttarakhand that have adopted AI techniques in their business operations. The results of the study revealed a significant positive impact of the adoption of AI by the organised retail businesses on their performance by providing manifold benefits., such as reduced costs, high level of return on sales and investment, accurate results, speedier tasks, enhanced productivity, improved quality, increased market share and a higher level of customer satisfaction and loyalty. The study reveals that despite the challenges that organisations in the retail industry encounter in implementing AI techniques in their business processes, such as unemployment of unskilled staff, huge infrastructure cost in AI implementation, and the benefits they get are still significant.
How artificial intelligence will change the future of marketing
Journal of the Academy of Marketing Science
In the future, artificial intelligence (AI) is likely to substantially change both marketing strategies and customer behaviors. Building from not only extant research but also extensive interactions with practice, the authors propose a multidimensional framework for understanding the impact of AI involving intelligence levels, task types, and whether AI is embedded in a robot. Prior research typically addresses a subset of these dimensions; this paper integrates all three into a single framework. Next, the authors propose a research agenda that addresses not only how marketing strategies and customer behaviors will change in the future, but also highlights important policy questions relating to privacy, bias and ethics. Finally, the authors suggest AI will be more effective if it augments (rather than replaces) human managers.
From Data to Decisions: Enhancing Retail with AI and Machine Learning
International Journal of Computing and Engineering, 2024
The recent advancements in computational power have presented unprecedented opportunities for businesses to harness data. A noteworthy development in December 2022 was the introduction of OpenAI's [1] ChatGPT, signifying the rise of generative AI tools including, but not limited to, Bard [2], Midjourney [3], GitHub Copilot [4], Amazon Bedrock, and Google's Gemini [5]. This research paper aims to harness AI capabilities within retail organizations, using data (customer) to expand business reach and enhance customer satisfaction. Data and AI form the core of this research. Methodology: In this research, we have trained a Large Language Model (LLM) by providing it with database schemas, including tables, to interact with centralized data and gain insights through simple prompts. We can leverage data for data Analysis and create reports, dashboards, understand customer behavior. Findings: Our research findings that AI serves as a pivotal force in amplifying the retail industry's potential. AI's applications span from improving customer experience by enabling voice orders, emotional insight, exclusive Deals just for you, product design, email campaign, optimizing inventory to facilitating targeted marketing strategies, list goes on. Yet, as we navigate this AI-augmented retail landscape, it is imperative to address challenges related to data privacy, algorithmic bias, implementation costs, and the need for expertise. Unique contributor to theory, policy and practice: In essence, generative AI is more than a fleeting trend; it epitomizes the future of retail, demanding both adoption and circumspection. Our recommendation to use AI for enhancing retail business and use it ethically.
The social significance of AI in retail on customer experience and shopping practices
Journal of Retailing and Consumer Services , 2022
This paper draws on practice-informed, ethnographic research to develop an understanding of the novel social consequences and opportunities afforded from consumers' interactions with AI digital humans as part of the instore shopping experience. We reveal and interrogate consumers' experiences with AI digital humans in an exploratory study undertaken during the launch phase of an in-store kiosk digital store greeter in a flagship store of a large national technology and appliance chain. Our findings contribute to understanding the social significance of AI in retail on customer experience (CX) and the managerial implications of consumers interactions with AI digital humans are described and discussed.
How artificial intelligence can change the core of marketing theory
Innovative Marketing
Various recently-introduced applications of artificial intelligence (AI) operate at the interface between businesses and consumers. This paper looks at whether these innovations have relevant implications for marketing theory. The latest literature on the connection between AI and marketing has emphasized a great variety of AI applications that qualify this relationship. Based on these studies but focusing only on the applications with a direct impact on the relationship at the very heart of marketing, i.e., the one between firms and consumers, the paper analyzes three categories of AI applications: AI-based shipping-then-shopping, AI-based service robots, and AI-based smart products and domestic robots. The main result of this first analysis is that all three categories have to do, each in their own way, with mass customization. A discussion of this common trait leads us to recognize their ways to mass customization that – unlike the traditional approach developed thanks to flexibl...
ANALYZING THE ADOPTION AND INFLUENCE OF AI IN RETAIL SUPPLY CHAIN OPERATIONS
IAEME PUBLICATION, 2023
The integration of Artificial Intelligence (AI) in retail supply chain operations has emerged as a transformative force, promising to revolutionize how retailers manage their operations, interact with customers, and compete in the marketplace. This paper provides a comprehensive analysis of the adoption and influence of AI in retail supply chains, examining its impact on operations, current trends, challenges and opportunities, and future directions. Through case studies and industry insights, we explore how retailers are leveraging AI technologies to enhance efficiency, optimize processes, and deliver personalized experiences that meet the evolving needs of consumers. While AI offers significant opportunities for innovation and growth, it also presents challenges such as data integration, talent gaps, ethical considerations, and cost considerations. Looking ahead, the future of AI in retail supply chains holds tremendous promise for further innovation and disruption, with advancements in hyperpersonalization, predictive analytics, autonomous supply chains, and augmented decision-making reshaping the retail landscape. By embracing AI technologies strategically and responsibly, retailers can unlock new opportunities for growth, differentiation, and success in an increasingly digital and dynamic marketplace.
Impact of AI on Retail Operation and Profitability Moderated by Employee Motivation and Upskilling
INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD , 2023
This article provides a comprehensive overview of the digital transformation of the retail industry and describes the influences on employee motivation, upskilling, employee productivityand innovations that it offers in retail store performance. Artificial intelligence (AI) allows human work to be shifted toward technological systems that are currently not fully capable. Incorporating AI tools in employee training will have an profound impacts on profitability in a business which will result in sustainability of the business. AI imparts companies a host of ways to better understand, predict, and engage customers. Furthermore AI tools has positive impact on employee motivation and upskilling. The objective if the research is to study the Impact of AI onemployee training and upskilling which impact on the profitability in the retail business and enhances the sustainability in market. The methodology used was qualitative and includedin-depth literature review and synthesizing observations and results made in field studies. Researchers have found direct links to various academic conversations surrounding this area of research. Using this framework retailer can have a better insight over the disruptive tools and their impact on employee motivation and upskilling. The findings showed that incorporation of disruptive tools in employee training has a significant impact on customer choices, preferences which enhances business sustainability.