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Artificial intelligence in e-commerce: a business process analysis

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Abstract

New internet-based technologies have changed the way business enterprises handle marketing, discovery, transaction processing, and product and customer service processes. One of the significant technologies is artificial intelligence (AI), which has partially or completely substituted humans for the performance of tasks. In a technology-driven industry such as e-commerce, the applications of AI are immense. To explicate the impact of AI as a technological phenomenon on the companies engaged in e-commerce, this chapter will detail the role of AI under e-commerce business processes like market research, market stimulation, terms negotiation, order selection and priority, order receipt, order billing/payment management, order scheduling/fulfillment delivery, and customer service and support.
Artificial Intelligence in E-Commerce: A Business Process Analysis
Citation:
Kalia, P. (2021). Artificial Intelligence in E-Commerce: A Business Process Analysis. In C.
Bhargava & P. K. Sharma (Eds.), Artificial Intelligence: Fundamentals and Applications
(pp. 919). Florida, United States: CRC Press, Taylor & Francis Group. Retrieved from
https://www.taylorfrancis.com/chapters/edit/10.1201/9781003095910-2/artificial-
intelligence-commerce-prateek-kalia
Abstract
New internet-based technologies have changed the way business enterprises handle marketing,
discovery, transaction processing, and product and customer service processes. One such
significant technology is artificial intelligence (AI) which has partially or completely substituted
humans for the performance of tasks. In a technology-driven industry such as e-commerce, the
applications of AI are immense. To explicate the impact of AI as a technological phenomenon on
the companies engaged in e-commerce, this chapter will detail the role of AI under each e-
commerce business process like market research, market stimulation, terms negotiation, order
selection and priority, order receipt, order billing/payment management, order scheduling/
fulfillment delivery and customer service and support.
Keywords Artificial intelligence, e-commerce, business process analysis, marketing, transaction
processing, service, support
1. Introduction
Researchers argue that the fourth industrial revolution will be powered by information and
communication technology, machine learning, digitization, robotics, and artificial intelligence
(AI). Machines will be utilized to make decisions, creating a profound impact on business
marketing practices and society (Syam and Sharma 2018; Dwivedi et al. 2019). In the next twenty
years, the AI revolution will have an even greater impact than the Industrial and digital revolutions
combined (Makridakis 2017). Studies confirmed that the emergence of intelligent products and
services is not just hyped as these possess the capability to transform the world (Sonia et al. 2020).
Researchers are convinced with the genesis of AI which has already crossed two “hype cycles” i.e.
first hype cycle in 1950-83, a resurgence in 1983-2010, second hype cycle in 2011-17 and now AI
is going to be the future of brains, minds, and machines (2018-35) (Aggarwal 2018; Simon 2019).
In a recent survey study, Frey and Osborne (2017) found that 47 percent of US jobs could be
automated by 2033, as AI will have a significant impact on sales, marketing, and customer service.
Experts have predicted the substantial effect of AI in three industries i.e. retail, education,
and health care (Ostrom et al. 2018). The retail industry with a high proportion of human work and
concurrent low-profit margins is a natural fit for AI applications, especially e-commerce (Weber
and Schütte 2019). Commonly, e-commerce companies are using AI for personalizing websites
and product recommendations (Netflix). Tech and retail giants such as Amazon.com are investing
heavily in research and development for advancing AI applications like recommendation engine
(Alexa), voice-powered assistants (Echo), the Prime Air drone initiative, etc. Amazon is offering
AI and machine learning capabilities to other companies through its cloud platform (AWS) (Weber
and Schütte 2019).
To understand the role and importance of AI in e-commerce, this chapter will be discussing
AI and its application in various business processes involved in an e-commerce business. But
before starting the discussion we should first understand the concept of AI which is detailed in the
proceeding section.
2. Artificial Intelligence
Before discussing artificial intelligence, we should first understand “intelligence”, which is the
ability of a person to learn, understand or deal with new situations, think abstractly, and use
knowledge to manipulate one's environment (Merriam-Webster.com 2020). In general terms,
intelligence can be defined as the ability to acquire and apply memory, knowledge, experience,
understanding, reasoning, imagination, judgment, opinions, facts, skills, calculations, information,
language to calculate, classify, generalize, perceive relationships, solve problems, plan, think
abstractly, comprehend complex ideas, learn quickly, overcome obstacles and adapt efficiently to
new situations, either by changing oneself or the environment (Legg and Hutter 2006; Paschen et
al. 2019).
2.1.AI mimicking human intelligence
The concept of AI originated from the considerations involving the extent to which the machine
can partially or completely replace humans in the performance of tasks (Weber and Schütte 2019).
Therefore, marketing literature defines AI in terms of human intelligence. For example,
researchers define AI as machines that exhibit aspects of human intelligence (Huang and Rust
2018), mimic intelligent human behavior (Syam and Sharma 2018), or as non-biological
intelligence (Tegmark 2017). Similarly, McCarthy (2007) defines AI as “the science and
engineering of making intelligent machines, especially intelligent computer programs. It is related
to the similar task of using computers to understand human intelligence, but AI does not have to
confine itself to methods that are biologically observable”. These definitions make AI contingent
on human intelligence (Bock et al. 2020).
2.2.AI Exceeding Human Intelligence
At times, humans indulge in behaviors that may not lead to the best outcome (Kahneman and
Tversky 1979), because of bounded rationality arising due to limited information, cognitive
abilities, and finite time to make decisions (Dawid 1999). Some scientists believe that machines
can exhibit human-like intelligence in two ways: acting intelligently (performing processes like
memorizing, learning, reasoning, perception, and problem-solving towards goal-directed
behavior) and rationality (achieving “right thing” under uncertainty) (Paschen et al. 2019).
AI, with the help of big data and deep learning can identify inclinations, intentions, and
patterns which are beyond the intellectual capacity of a human brain. The human brain can interpret
and conclude from limited data; however, machines can interpret billions of data points. AI has
advanced through “four intelligences” (i.e. from analytical to emotional) (Huang and Rust 2018)
to acquire advanced capabilities like reasoning, planning, conceptual learning, creativity, common
sense, cross-domain thinking, and even self-awareness (Bock et al. 2020). In this scenario, the
definition of AI proposed by Kaplan and Haenlein (2019) sounds more appropriate, i.e. AI “as a
system’s ability to interpret external data correctly, to learn from such data and to use those
learnings to achieve specific goals and tasks through flexible adaptation.”
3. E-commerce Business Processes and Artificial Intelligence
There are various business processes like marketing, buying, selling, and servicing of products and
services performed by the companies involved in e-commerce (Figure 1). These businesses
completely depend on e-commerce applications and internet-based technologies to carry out
marketing, discovery, transaction processing, and product and customer service. E-commerce
websites carry out interactive marketing, ordering, payment, and customer support processes on
the World Wide Web. E-commerce also includes processes related to e-business, where suppliers
and customers access inventory databases through extranet (transaction processing), or sales and
customer service representatives access customer relationship management (CRM) systems via
the internet (service and support) or customers collaborate in product development through email
and social media (marketing/discovery) (O’Brien and Marakas 2011).
Researchers believe that AI can improve business performance because AI solutions are
faster, cheaper, and less prone to human mistakes (Huang and Rust 2018; Canhoto and Clear 2020).
Therefore, in the next sections, we will try to understand how AI is contributing to various e-
commerce business processes.
Figure 1. E-commerce business processes supporting the electronic selling of goods and services.
3.1.Marketing
3.1.1. Market Research
Till the third industrial revolution, businesses used information technology for data processing and
communication only. However, the fourth industrial revolution will allow computers to make
appropriate and reliable decisions (Syam and Sharma 2018). Researchers believe that large
businesses failing to deploy the latest technologies such as AI will be swept away in the face of
competition (Stone et al. 2020). The primary focus of market research is to identify accurate
segments of customer groups. Selected segments are targeted with suitable products, offered at
appropriate prices, supported with reasonable promotional and communication strategies to deliver
products to customers through appropriate distribution strategy (Syam and Sharma 2018). Earlier,
segmentation was generally based on ‘traditional’ techniques like cluster analysis (for clustering),
chi-squared automatic interaction detection (CHAID) (for classification), or more recent
segmentation techniques like hidden Markov models, support vector machines, artificial neural
networks (ANN), classification and regression trees (CART) and genetic algorithms. Machine
learning tools of the new century have increased the efficiency of these segmenting algorithms.
For example, AI empowered ANN models can find solutions for marketing problems faced by
B2B e-commerce companies (Wilson and Bettis-outland 2020). Marketers have enormous
statistics in their hands to process massive unstructured data (Big Data) for segmentation with the
help of unsupervised neural networks (Hruschka and Natter 1999). Now profitability or customer
lifetime value (CLV) segments can be identified based on machine learning-powered decision
trees (Florez-lopez and Ramon-jeronimo 2009). AI can process a huge amount of written and non-
written user-generated content available on social media platforms to reveal user needs,
preferences, attitudes, and behaviors. For example, the IBM Watson AI system can identify
psychographic characteristics expressed in a piece of text to give valuable insights to marketers
for new product development or innovation (IBM 2020). AI can identify themes and patterns in
users’ posts to interpret user experience and the information can be used for creating strategies to
enhance user experience. It also helps in gathering, sorting, and analyzing external market
knowledge i.e. intelligence about external market forces and stakeholders which may influence
customer preferences and behaviors. For example, AI systems empowered by machine learning
and natural language processing algorithms can identify fake news from huge amount of content
published on blogs, social media etc. (Berthon and Pitt 2018). Similarly, competitive intelligence
can be developed by identifying themes or keywords from unstructured data (news, social media,
website content etc.) (Paschen et al. 2019).
3.1.2. Market Stimulation
Market stimulation is concurrent to marketing which is, the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large (American Marketing Association 2017).
Typically, it encompasses four separable but interlinked components i.e. product. price, place, and
promotion (McCarthy 1960). However, the concept of marketing has arrived at an evolutionary
point where adaptation to technology is imperative and the impact of AI under each marketing mix
component is obvious i.e. for the product (hyper-personalization, new product development,
automatic recommendations, etc.), price (price management, personalized dynamic pricing), place
(convenience, speed, simple sales process, 24/7 chatbot support, etc.) and promotion (personalized
communication, unique user experience, creating wow factor, minimized disappointment, etc.)
(Jarek et al. 2019; Dumitriu and Popescu 2020). Out of five AI areas i.e. image recognition, text
recognition, decision-making, voice recognition, and autonomous robots and vehicles, the first
three are used quite extensively in marketing. Marketers are cautiously implementing AI
applications because of the cost and uncertainty attached to them. However, large tech companies
like Google, Amazon, Microsoft, and Apple are investing in AI areas like voice recognition and
autonomous robots and vehicles solutions (Jarek et al. 2019). As a result, there is a significant
effect of AI on contemporary marketing practices, for example, routine, time consuming and
repeatable jobs have been automated (data collection, analysis, image search, processing), strategic
and creative activities to build competitive advantage are emphasized and business enterprises are
designing innovative ways to deliver customer value. It has further created a marketing ecosystem
where entities offering AI solutions are in demand (Jarek et al. 2019).
3.2.Transaction Processing
3.2.1. Terms Negotiation
Negotiation can be defined as art (more than science) to get what you want from bargaining or
person-to-person interaction. Most of the interactions in the case of e-commerce transactions are
electronic i.e. through email, social media, text chat, or phone. In this setting, AI can be applied as
functional science to give an advantage in the negotiation process (Mckendrick 2019). Negotiation
is like a persuasion dialogue where series of arguments are proposed by a proponent and an
opponent iteratively, and both issues counter-arguments to defeat each other’s argument (Huang
and Lin 2005). Based on the components of negotiations i.e. negotiation set, a protocol, a collection
of strategies, and a rule of a deal, scientists are training their chatbots and virtual assistants to plan
several steps and assess how saying different things could change the outcome of the negotiation
(Reynolds 2017). These AI negotiation agents can operate 24/7 on behalf of e-retailer to locate
customers and automatically negotiate to best term as per parameters set by the administrator or
even market conditions (Krasadakis 2017). It is quite difficult for online stores to engage in
communication through graphical user interfaces (websites) to acquire, serve, and retain
customers. Similarly, there is no chance for the customers to negotiate for a better deal (Huang
and Lin 2005). But deploying a natural language interface for human-computer interaction can
effectively solve this problem (Jusoh 2018).
E-commerce is a highly dynamic market and prices change rapidly. E-commerce
companies are using AI for dynamic pricing of their product and services i.e. adjusting prices as
per market conditions (demand-supply) on a real-time basis (Kephart et al. 2000).
3.2.2. Order Selection and Priority
Recently, Alibaba launched Fashion AI technology to boost sales. Customers can upload pictures
of a product they would like to buy to its Taobao e-commerce site and the website automatically
searches that item for sale similar to the photo (Simon 2019). Similarly, AI can collect real-time
data by tracking the online activity of the customer on their or competitor’s website to decide and
offer a price discount or search through the company’s database to check if those shoppers have
rejected or accepted previous product recommendations (Canhoto and Clear 2020). Another
important application of AI is replenishment optimization. AI can reduce the inventory costs by
determining the right time and quantity, for placing an order to the central warehouse and the
suppliers (Stone et al. 2020). This can resolve several issues such as reduction in the number or
amount of the unsold goods, optimization of the shelf space in the warehouse, and increase in cash
flow. AI algorithms can optimize individual order and delivery (personalization) (Zanker et al.
2019) and simplify complex tasks like same-day delivery (Kawa et al. 2018).
3.2.3. Order Receipt
With the help of predictive systems, AI can evaluate prospects (customers) on their propensity to
buy (high-quality leads) (Järvinen and Taiminen 2016), answer common questions and overcome
objections of customers by using emotion AI (Paschen et al. 2019) and automate and speed up the
checkout process (Campbell et al. 2020). Front-runner e-commerce companies like Amazon have
introduced language-assisted ordering (Amazon Echo) (Holmqvist et al. 2017). Complex AI
models are used for sales forecasting (Dwivedi et al. 2019), store assortments (Shankar 2018), and
personalizing the searches, recommendations, prices, and promotions (Montgomery and Smith
2009). AI can automate service encounters and give personalized and relevant information on a
variety of devices (Bock et al. 2020).
3.2.4. Order Billing/Payment Management
AI can help e-commerce companies in three key areas: invoicing, payment optimization, and fraud
detection (Mejia 2019). Billing and invoice processing are the most burdensome and complicated
tasks in business. However, AI applications can help businesses in matching customer invoices
with received payments (Dwivedi et al. 2019). Manual and semi-automated billing processes
cannot handle a huge number of customer payments, but AI-enabled billing systems support
features like invoice segregation, data extraction, invoice generation, etc., and can handle huge
amounts of data to avoid any anomalies, inconsistencies, and disparities within the invoices (Bajpai
2020). Online transaction is one of the most convenient ways to perform payment with the help of
a computer and the internet. Customer can use their e-wallets, credit card, debit card, online
banking credentials for an online transaction (Kalia 2016; Kalia et al. 2017a). Despite various
security measures risk in terms of fraud is associated with every online transaction (Papadopoulos
and Brooks 2011). AI-powered billing software can prevent fraud from occurring in the first place
by activating an automatic decision-oriented and sophisticated fraud detection system (Khattri and
Singh 2018). For example, Fraugster uses historical data related to the transaction, billing, shipping
addresses, and IP connection to detect payment fraud (Canhoto and Clear 2020).
3.3.Service and Support
3.3.1. Order Scheduling/Fulfillment Delivery
Order scheduling and fulfillment include tasks related to the pick-up or delivery of products and
services at the right place and time in the right quantity and quality (Weber and Schütte 2019).
Due to irregular order patterns, limited time for order processing, and short-term delivery
schedules, the e-commerce industry require extremely efficient fulfillment processes (Leung et al.
2018). Here, AI systems can actively monitor and optimize these processes by considering order
demand factors and product characteristics to automate perfect logistics strategy (Lam et al. 2015;
Paschen et al. 2019). Researchers argue that sustainable supply chains and reverse logistics are
predominant themes for the present as well as future researches in AI (Dhamija and Bag 2019).
Therefore, leading e-commerce companies like Amazon.com are investing in robotics and space-
age fulfillment technologies (drones for order delivery) (Dirican 2015). Apart from fulfillment,
reverse logistics is another challenge. Products are generally returned without their original
packing plus seasonally changing collections and product similarity can complicate the process.
AI-powered automatic image recognition can compare these returns with catalog images to sort
the products (Kumar et al. 2014).
3.3.2. Customer Service and Support
In the e-commerce industry, service quality can be a game-changer (Kalia et al. 2016, 2017b; Kalia
2017a, b). AI can play a leading role in customer service and support by enhancing satisfaction,
improving relationships, personalizing support, and providing recovery in case of service failures.
Researchers call it “service AI”, and define it as, “configuration of technology to provide value in
the internal and external service environments through flexible adaptation enabled by sensing,
learning, decision-making and actions” (Bock et al. 2020). Therefore, Service AI is not just about
applying pre-programmed decisions but it has learning ability as well (Makridakis 2017). AI can
affect customer satisfaction because AI-based service is more reliable, high quality, consistent,
continuously available (24/7), and less susceptible to human errors arising due to fatigue and
bounded rationality (Huang and Rust 2018). Similarly, it is easier for e-commerce companies to
undertake marketing activities to establish, develop and maintain relationships with customers (Lo
and Campos 2018). For instance, virtual assistants can notify millions of users or analyze their
purchases, returns, or loyalty card information and provide services that are beyond human ability.
AI-enabled systems can create comprehensive profiles of current or potential customers by using
structured and unstructured data related to their psychographic, demographic, webographic
characteristics and online buying behavior (frequency, recency, type, and size of past purchases)
and process it with the help of machine learning and predictive algorithms to strengthen customer
relationship efforts and prospecting of potential customers (Lo and Campos 2018; Paschen et al.
2019). AI can provide a high-quality personalized experience to customers by learning to speak in
multiple languages, identify customers’ emotional states, or retrieve information for them. A
dissatisfied customer can spread negative word of mouth. However, firms can mine high-quality
customer feedbacks to develop service recovery strategies (Lo and Campos 2018).
4. Concluding Remarks
Artificial Intelligence holds an elaborate and key role in various segments/ processes of e-
commerce business enterprises. To achieve this objective role of artificial intelligence under each
e-commerce business process like market research, market stimulation, terms negotiation, order
receipt, order selection and priority, order billing/payment management, order scheduling/
fulfillment delivery and customer service and support has been detailed. We noticed that possible
applications of AI for marketing, transaction processing, and service and support for e-commerce
businesses are numerous. At the pace of current technological developments, AI will graduate
from merely a tool for data and information processing (Weak AI) to an independent system
capable of taking human decisions (Strong AI).
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... AI holds an elaborate and key role in various forms of e-commerce (Kalia, 2021). Consumers are very conscious and expect organisations to provide personalised products and services (Zia & Hashmi, 2019;Zia & Khan, 2018). ...
... Predictive analytics plays a vital role in understanding and predicting consumer behaviour. The digital revolution and big data have made it possible for organisations to use predictive analytics for pricing and risk selection (Ganapathy, 2019;Kalia, 2021), identifying risk associated with the cancellation of insurance policies (Jawid, 2021), cyber fraud management (Iminova, Abdimuminova, & Mamurov, 2019;Tonn, Kesan, Zhang, & Czajkowski, 2019), claims settlements (Behrendt et al., 2020;Gebert-Persson, Gidhagen, Sallis, & Lundberg, 2019;Gowanit et al., 2016;Sjoquist & Wheeler, 2021), and anticipating trends (Chopdar, Korfiatis, Sivakumar, & Lytras, 2018;Dey, Babu, Rahman, Dora, & Mishra, 2019;Roy, Basu, & Ray, 2020). ...
... Data mining techniques help hedge the risks associated with the insurance sector (Hilker & Zajko, 2015). This new technology is proving to be very helpful in employee interactions (Leftheriotis & Giannakos, 2014), developing innovative products (Hilker, 2016), predicting consumers behaviour (Maravilhas, 2016;Wittwer, Reinhold, Alt, Jessen, & Stüber, 2017), increasing customer participation (Bazrkar, Hajimohammadi, Aramoon, & Aramoon, 2021), managing and minimising online frauds (Costa, Boj, & Fortiana, 2012;Diaz-Granados, Diaz-Montes, & Parashar, 2015;Kalia, 2021), promoting products, developing customer loyalty (Shrestha, Alsadoon, Prasad, Venkata, & Elchouemi, 2019), creating markets, and many more (Ho et al., 2020;Xiao, 2020). The user-friendliness, cost-effectiveness, penetration, 24 × 7 accessibility, problem redressal mechanism, and ease of adaptability made social media a favourite new technology for the insurance sector. ...
... Also, regarding dynamic pricing, ecommerce businesses can use artificial intelligence to adjust product prices based on changing market conditions, such as demand and supply. It allows them to remain competitive effectively and optimally [15]. ...
... Finally, in terms of transactions, AI can process e-commerce transactions more quickly and accurately. It not only improves efficiency but also increases the overall speed of the business [15], [16]. Thus, using AI in e-commerce businesses has excellent potential to improve efficiency, productivity, and customer experience significantly. ...
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Along with the increasing popularity of online shopping in Indonesia, the E-retailing business has increased in recent years in Indonesia. This research aims to analyze the trends and developments of e-retailing in Indonesia and globally. This research is a type of literature study research with a qualitative approach. The analysis process is divided into several stages: data set preparation, import, cleaning, and visualization. The data set of scientific articles is taken from the publication database of the Emerald publisher with the keyword e-retailing, which was published in the range of 2018-2023. The type of data is English-language journal articles that are open access and restricted access. The analysis technique used was bibliometric analysis and systematic literature review with multi-dimensional scaling method with VosViewer software tool with co-occurrence analysis type, all keywords, and binary counting method by determining the occurrence of keywords at least 7 times. The results showed seven main variables related to e-retailing: flow experience, chatbot, usefulness, artificial intelligence, online shopping, customer convenience, and customer satisfaction. It shows that flow experience, chatbot, usefulness, artificial intelligence, customer convenience, and customer satisfaction are important factors influencing the success of e-retailing. This research also shows that e-retailing is still new and needs to be continuously developed. It can be seen from the low density of research related to this topic.
... The rise of the internet in the 2000s provided a huge source of data and information for AI researchers (Turner, 2019). In the same period, the commercial use of artificial intelligence in advertising, ecommerce and many other areas has brought criticism of artificial intelligence back to the agenda in many areas, especially in the labor market (Kalia, 2021). However, the developments in this period also contributed to the development of today's chatbot-based artificial intelligence applications. ...
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This study focuses on comparing the performance of two leading artificial intelligence (AI) models, ChatGPT and Gemini, in generating touristic information about Ayasofya. While both models show strengths in providing historical and architectural detail, they contrast in their focus and depth of information. ChatGPT provides a concise and user-friendly overview, ideal for tourists looking for basic information, while Gemini targets to a deeper interest in history and architecture by offering a more comprehensive and technical analysis enriched with visuals. This comparison underlines the various capabilities of AI models in enhancing the tourist experience by providing information based on individual preferences and interests. Similar research on different destinations will be critical in shaping the future of AI technology in the tourism and travel industry.
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For the last few years, one can see the emergence of a large number of intelligent products and services, their commercial availability and the socioeconomic impact, this raises the question if the present emergence of AI is just hype or does it really have the capability of transforming the world. The paper investigates the wide range of implications of artificial intelligence (AI), and delves deeper into both positive and negative impacts on governments, communities, companies, and individuals. This paper investigates the overall impact of AI - from research and innovation to deployment. The paper addresses the influential academic achievements and innovations in the field of AI; their impact on the entrepreneurial activities and thus on the global market. The paper also contributes in investigating factors responsible for the advancement of AI. For the exploration of entrepreneurial activities towards AI, two lists of top 100 AI start-ups are considered. The inferences obtained from the research will provide an improved understanding of the innovations and the impact of AI on businesses and society in general. It will also provide a better understanding of how AI can transform the business operations and thus the global economy.
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Purpose “Technological intelligence” is the capacity to appreciate and adapt technological advancements, and “artificial intelligence” is the key to achieve persuasive operational transformations in majority of contemporary organizational set-ups. Implicitly, artificial intelligence (the philosophies of machines to think, behave and perform either same or similar to humans) has knocked the doors of business organizations as an imperative activity. Artificial intelligence, as a discipline, initiated by scientist John McCarthy and formally publicized at Dartmouth Conference in 1956, now occupies a central stage for many organizations. Implementation of artificial intelligence provides competitive edge to an organization with a definite augmentation in its social and corporate status. Mere application of a concept will not furnish real output until and unless its performance is reviewed systematically. Technological changes are dynamic and advancing at a rapid rate. Subsequently, it becomes highly crucial to understand that where have the people reached with respect to artificial intelligence research. The present article aims to review significant work by eminent researchers towards artificial intelligence in the form of top contributing universities, authors, keywords, funding sources, journals and citation statistics. Design/methodology/approach As rightly remarked by past researchers that reviewing is learning from experience, research team has reviewed (by applying systematic literature review through bibliometric analysis) the concept of artificial intelligence in this article. A sum of 1,854 articles extracted from Scopus database for the year 2018–2019 (31st of May) with selected keywords (artificial intelligence, genetic algorithms, agent-based systems, expert systems, big data analytics and operations management) along with certain filters (subject–business, management and accounting; language-English; document–article, article in press, review articles and source-journals). Findings Results obtained from cluster analysis focus on predominant themes for present as well as future researchers in the area of artificial intelligence. Emerged clusters include Cluster 1: Artificial Intelligence and Optimization; Cluster 2: Industrial Engineering/Research and Automation; Cluster 3: Operational Performance and Machine Learning; Cluster 4: Sustainable Supply Chains and Sustainable Development; Cluster 5: Technology Adoption and Green Supply Chain Management and Cluster 6: Internet of Things and Reverse Logistics. Originality/value The result of review of selected studies is in itself a unique contribution and a food for thought for operations managers and policy makers.
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Artificial intelligence (AI) is at the forefront of a revolution in business and society. AI affords companies a host of ways to better understand, predict, and engage customers. Within marketing, AI’s adoption is increasing year-on-year and in varied contexts, from providing service assistance during customer interactions to assisting in the identification of optimal promotions. But just as questions about AI remain with regard to job automation, ethics, and corporate responsibility, the marketing domain faces its own concerns about AI. With this article, we seek to consolidate the growing body of knowledge about AI in marketing. We explain how AI can enhance the marketing function across nine stages of the marketing planning process. We also provide examples of current applications of AI in marketing.
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Artificial Intelligence (AI) and Machine Learning (ML) may save costs, and improve the efficiency of business processes. However, these technologies can also destroy business value, sometimes critically. The inability to identify how AI and ML may destroy value for businesses, and manage that risk, lead some managers to delay the adoption of these technologies, and, hence, prevents them from realizing the technologies’ potential as business tools. This article proposes a new framework by which to map the components of an AI solution, and to identify and manage the value destruction potential of AI and ML for businesses. We show how the defining characteristics of AI and ML risk the integrity of the AI system’s inputs, processes and outcomes. We, then, drawn on the concepts of value creation content and value creation process to conceptualize how these risks may hinder the process of value creation and actually result in value destruction. Finally, we illustrate the application of our framework with the example of the deployment of an AI powered chatbot in customer service, and discuss how to remedy the problems identified.
Chapter
In this chapter, we take a customer-centric view of narrow artificial intelligence (AI), or task-specific AI applications. Because of the breadth and extent of AI applications, we limit our focus to service encounters-which are times when customers interact directly on the frontline with a service company or organization. The purpose is to illuminate the roles of AI in the context of frontline service encounters and to identify the potential benefits and negative consequences for customers of AI-supported, AI-augmented, and AI-performed services. We develop a conceptual framework of the antecedents and consequences of AI acceptance by customers grounded in previous research, theory, and practice. Previous research has examined the adoption of self-service technologies (SSTs) and established that innovation characteristics and individual differences predict role clarity, motivation and ability (RMA), which in turn predict adoption of SSTs (see Meuter et al. 2005; Blut et al. 2016). However, we believe that additional antecedents will come into play in predicting the acceptance of service encounter technologies tied to AI. Therefore, we expand the relevant set of antecedents beyond the established constructs and theories to include variables that are particularly relevant for AI applications such as privacy concerns, trust, and perceptions of "creepiness." We also examine a broader set of potential consequences of customer acceptance of AI including what customers may experience (e.g., more personalized service encounters) and how AI may affect customers (e.g., lead to increased well-being due to more access to services). The chapter concludes with research questions and directions for the future tied directly to the conceptual framework.
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This chapter starts with a premise: whether significant difference in perceived service quality (PSQ) exists within demographic characteristics of online shoppers, such as education, age, gender, monthly income, occupation, and marital status. Web survey has been administered to 308 online shoppers of the four most popular e-retailers in India, who have made at least one online purchase in past six months. Hypotheses have been formulated on the basis of panoptic literature review of six demographic factors (i.e., education, age, income, occupation, marital status, and gender). Kruskal-Wallis (H Test) and Mann-Whitney Test have been used to check difference in PSQ within different demographic factors. No significant difference in PSQ within different demographic factors has been found, except within different occupational categories. Subsequent post-hoc test elucidated significant difference within business-service and business-student groups; however, there was no significant difference within service-student groups.
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Purpose Artificial intelligence (AI) is currently having a dramatic impact on marketing. Future manifestations of AI are expected to bring even greater change, possibly ushering in the realization of the fourth industrial revolution. In accord with such expectations, this paper aims to examine AI’s current and potential impact on prominent service theories as related to the service encounter. Design/methodology/approach This paper reviews dominant service theories and their relevance to AI within the service encounter. Findings In doing so, this paper presents an integrated definition of service AI and identifies the theoretical upheaval it creates, triggering a plethora of key research opportunities. Originality/value Although scholars and practitioners are gaining a deeper understanding of AI and its role in services, this paper highlights that much is left to be explored. Therefore, service AI may require substantial modifications to existing theories or entirely new theories.
Article
Purpose Artificial neural network (ANN) models, part of the discipline of machine learning and artificial intelligence, are becoming more popular in the marketing literature and in marketing practice. This paper aims to provide a series of tests between ANN models and competing predictive models. Design/methodology/approach A total of 46 pairs of models were evaluated in an objective model-building environment. Either logistic regression or multiple regression models were developed and then were compared to ANN models using the same set of input variables. Three sets of B2B data were used to test the models. Emphasis also was placed on evaluating small samples. Findings ANN models tend to generate model predictions that are more accurate or the same as logistic regression models. However, when ANN models are compared to multiple regression models, the results are mixed. For small sample sizes, the modeling results are the same as for larger samples. Research limitations/implications Like all marketing research, this application is limited by the methods and the data used to conduct the research. The findings strongly suggest that, because of their predictive accuracy, ANN models will have an important role in the future of B2B marketing research and model-building applications. Practical implications ANN models should be carefully considered for potential use in marketing research and model-building applications by B2B academics and practitioners alike. Originality/value The research contributes to the B2B marketing literature by providing a more rigorous test on ANN models using B2B data than has been conducted before.