How Artificial Intelligence technology adoption is transforming Retailing landscape and facilitating sustained Competitive advantage for Retailers

Abstract

The retailing industry is experiencing an exceptional transformation due to fast-changing consumer purchasing behaviour and recent technological advances. Artificial intelligence (AI) will have a considerable influence on the retailing industry in the future. In this paper, which is a qualitative analysis based on the literature review of various relevant research work, we have identified key factors that impact artificial intelligence technology adoption by retailers. We have also highlighted the extent to which key factors such as ease of use and purchase intention enhance customer satisfaction due to the technology interface. We have conceptualised a research framework that also discusses the scope of ethics and customer privacy dimensions and their impact on AI technology adoption. We have highlighted how retailers can build a sustained competitive advantage by adopting AI technology across all components of the organisation value chain and focusing on a smart and connected product portfolio. The research also elaborates on the outcomes of artificial technology adoption, which will enable the retailer to achieve high levels of customer satisfaction and operational efficiency. We conclude on an optimistic note about the impact of AI on the retailing industry and also lay out the scope for further research avenues on AI and retailing.