Review of Artificial Intelligence with Retailing Sector

Abstract

This research service provides an original perspective on how artificial intelligence (AI) is making its way into the retail sector. Retail has entered a new era where ECommerce and technology bellwethers like Alibaba, Amazon, Apple, Baidu, Facebook, Google, Microsoft, and Tencent have raised consumers' expectations. AI is enabling automated decision-making with accuracy and speed, based on data analytics, coupled with self- learning abilities. The retail sector has witnessed the dramatic evolution with the rapid digitalization of communication (i.e. Internet) and; smart phones and devices. Customer is no longer the same as they became more empowered by smart devices which has entirely prevailed their expectation, habits, style of shopping and investigating the shops. This article outlines the Significant innovation done in retails which helped them to evolve such as Artificial Intelligence (AI), Big data and Internet of Things (IoT), Chatbots, Robots. This article further also discusses the ideology of various author on how AI become more profitable and a close asset to customers and retailers.

Consumer reactions to AI design: Exploring consumer willingness to pay for AI‐designed products

“…Second, AI can overcome the knowledge constraints of company designers and generate product ideas previously undiscovered by professionals (Haefner et al, 2021; Verganti et al, 2020). Third, AI can design products by predicting consumer demand and behavior, thereby reducing the risk and cost of the innovation process (Kaur et al, 2020). In these ways, AI has a substantial impact on product design.…”

The role of artificial intelligence in improving the omnichannel customer experience

“…In this highly competitive market, sellers cannot afford to be left behind and an understanding of the key drivers of customer behavior is essential to design targeted channel migration campaigns (Kaur et al, 2020;Frasquet et al, 2017), especially on the omnichannel environment that involves complex elements to integrate a seamless shopping experience. Even though omnichannel has been a relevant topic of study in the last decade, omnichannel customer experience is still rarely explored (Gerea et al, 2021).…”

“…The implementation of AI in the retailing context AI enables automated decision-making with accuracy and speed, based on data analytics, coupled with self-learning abilities (Kaur et al, 2020). AI is not a new topic; however, the evolution of the uses of this technology in contexts that involve consumers is novel.…”

“…Another example of AI systems implementation is AmazonGo shop, an AI-Powered Automated Retail Store (AIPARS) that integrates AI systems, robotics and advanced software systems to deliver a fully automated and customized shopping experience (Pillai et al, 2020;Weber and Sch€ ute, 2019). Thus, AI is continuously offering retailers the opportunity to both increase gains in productivity throughout the business and enhance the consumption experience (Kaur et al, 2020).…”

“…One of the key advantages of implementing AI systems is their capacity to deliver "tailor-made" experiences using information collected from previous purchases and consumption patterns, which can influence purchasing decisions (Grewal et al, 2018). In the subsequent years, AI-based systems will continue to boost efficiency in service and customer engagement leading to an enhancement of the consumption experience (Kaur et al, 2020;Pillai et al, 2020). Despite AI's popularity, many questions remain to be answered (Kaplan and Haenlein, 2019).…”