Analyzing AI Investment Impact on Customer Satisfaction at M&S

This report investigates the impact of artificial intelligence on customer satisfaction, focusing on Marks and Spencer as a case study. It examines the continuous investment in AI, its effects on customer satisfaction levels, and specific ways AI can improve customer experience within the organization. The report delves into the importance of AI for businesses, highlighting opportunities for AI in enhancing decision-making, automating processes, and creating job opportunities requiring specialized AI skills. It analyzes how AI-powered chatbots and data analytics contribute to targeted marketing campaigns and improved customer service, ultimately aiming to understand and optimize the relationship between AI investment and customer satisfaction in a contemporary business context. Desklib provides this and many other solved assignments for students.

Business Management
Research

Abstract
Artificial intelligence has become an important component for businesses operating
across different industries. This is because it helps them in enhancing their existing operational
processes as well as develop a better understanding of the preferences as well as needs of the
customers in an efficient manner. Businesses are increasingly adopting effective artificial
intelligence in their systems to provide better services to the customers as well as ensure that
they are satisfied with the same. Marks and Spencer, which is a leading retail organization based
in London, United Kingdom, has implemented artificial intelligence based chatbots. With the
help of these, the company has been able to interact with a larger base of customers, understand
their issues and queries as well as provide effective solutions for the same. Besides this, the
company has also been able to develop effective strategies and make informed decisions based
on the data received from artificial intelligence as well as use the same for running targeted
marketing campaigns. It can be said that artificial intelligence has become an important aspect
for contemporary firms and has impacted the overall level of customer satisfaction to a great
extent. The respective report explains the impact of artificial intelligence on customer
satisfaction to a great extent. Apart from this, it can also be said that there are different
opportunities of artificial intelligence for businesses such as it can help in making informed
decisions. Not only this, the implementation of artificial intelligence in organizations has led an
opportunity for an increased number of job opportunities. And in order to fill in the vacancies in
companies, candidates will be required to possess effective experience as well as specific
knowledge and skills for the same. With the application of artificial intelligence increasing over
the years, there are still a lot of opportunities that will transform the way in which business
operate to a large extent by reducing manual labor as well as improving the overall efficiency of
the businesses operating across different industries.

Contents
Abstract......................................................................................................................................................2
Part - 1........................................................................................................................................................4
INTRODUCTION.....................................................................................................................................4
Aims and Objectives..................................................................................................................................5
Aim..........................................................................................................................................................5
Research Objectives................................................................................................................................5
Research Questions.................................................................................................................................5
Rationale for this project.........................................................................................................................5
Literature Review......................................................................................................................................6
Continuous investment in artificial intelligence.......................................................................................6
The impact of artificial intelligence on customer satisfaction..................................................................7
Different ways in which artificial intelligence can improve customer satisfaction in Marks and Spencer
.................................................................................................................................................................9
Importance of artificial intelligence for organizations...........................................................................10
Opportunities for artificial intelligence in business...............................................................................12
REFERENCES........................................................................................................................................15
Part - 2......................................................................................................................................................16
INTRODUCTION...................................................................................................................................16
Research Methodology............................................................................................................................16
Data Analysis...........................................................................................................................................17
Discussion and Analysis of findings........................................................................................................25
Conclusions and Recommendations.......................................................................................................32
REFERENCES........................................................................................................................................34
Appendix..................................................................................................................................................36

Part - 1
INTRODUCTION
Artificial intelligence can be referred to as the simulation of human intelligence in
different machines that are programmed to think like humans. It has been an important field of
study and is being implemented by a large number of organizations because it helps in
automating the routine processes and tasks, thereby increasing the overall optimization
(Aladayleh, 2020). There are also various advantages of artificial intelligence such as it helps in
reducing the level of human error, assists in making faster decisions and also helps jobs that are
repetitive. Considering these as well as various ither advantages, companies across different
industries are investing significantly in artificial intelligence. The benefits of artificial
intelligence range from automating different processes within the workplace, improving
customer service, evaluating the overall scope of marketing strategies. helping with the decision-
making process as well as reducing human error. In daily routine, there are many repetitive
works that have to be carried out within an organization and hence, using artificial intelligence
can automate these tasks, thereby increasing the overall productivity as well as efficiency of the
company. Apart from this, artificial intelligence is also being used in the form of digital
assistants by organizations to interact with their customers as well as other users. This helps in
saving time as well as the need for human resources to carry out the tasks. Customer satisfaction
on the other hand, can be referred to as how well a product or the service provider is able to fulfil
the needs as well as expectations of the customers.
Customers are always looking for products that satisfy their needs and are based on their
preference as well as need (ALI and et.al., 2021). Today, many companies have automated the
customer support operations within their workplace with chatbots. They can be defined as virtual
tools that are powered by artificial intelligence and help the company in interacting with the
customers, understanding their preferences and also, addressing the queries or concerns that are
raised by them in an effective manner. this eases out the whole process for the company as well
as the customers because they don’t have to wait in for long durations of time. Organization
chosen for the respective report is Marks and Spencer, which is a leading multinational retailer of
household as well as clothing products. the company was founded in the year 1884 by Michael

Marks and Thomas Spencer. The respective report will help the readers in developing an
understanding about the continuous investment in artificial intelligence and its impact on
ensuring customer satisfaction. Besides this, it will also explain the importance of implementing
artificial intelligence in organizations.
Aims and Objectives
Aim
“To understand the continuous investment in artificial intelligence and analyze its impact
of on customer satisfaction. A study on Marks and Spencer.”
Research Objectives
 To understand the continuous investment in artificial intelligence.
 To analyze the impact of artificial intelligence on customer satisfaction.
 To identify the different ways in which artificial intelligence can improve customer
satisfaction in Marks and Spencer.
 To determine the importance of artificial intelligence for organizations.
 To identify the opportunities for artificial intelligence in business.
Research Questions
 What is meant by continuous investment in artificial intelligence?
 What is the impact of artificial intelligence on customer satisfaction?
 What are the different ways in which artificial intelligence can improve customer
satisfaction in Marks and Spencer?
 What is the importance of artificial intelligence for organizations?
 What are the opportunities for artificial intelligence in business?
Rationale for this project
The main rationale for choosing this project is to enhance my existing knowledge about
the importance of artificial intelligence in organizations as well as its impact on the overall
customer satisfaction (Alshurideh and Hassanien, 2021). Apart from this, the respective project
will help me in developing an understanding about how to undertake a research as well as about
the process of data collection. I want to develop skills such as time management, organization as
well as communication skills. This is because these are important employability skills that

employers today expect the candidates to have. Besides this, I want to build my career in the
research sector and hence, this project will be helpful for me in developing skills and knowledge
that I can implement in the future.
Literature Review
Continuous investment in artificial intelligence
As already mentioned, artificial intelligence has become an important part of businesses
and organizations operating across different industries. This is because it helps them in reducing
manual labor by automating the different things (Baklanov and et.al., 2020). It can be said that
by taking into account the different benefits, companies are continuously investing in artificial
intelligence. Investing in AI and ML has many perks to the corporations. Machine gaining
knowledge of clubbed with artificial intelligence can automate maximum of the mundane
responsibilities and unburden the personnel. Data analytics is considered the gasoline for
organizations these days and device learning enables this evaluation in a hassle-free way. The
report states one technique wherein groups are investing in device gaining knowledge of is by
growing information scientists hiring (Balkan, 2021). Year-on-yr, the common number of
statistics scientists has extended to seventy six%, famous the document. The extra the power of
information science teams, the less difficult it will become to broaden and install ML algorithms
and models. This hiring method also shows the point of interest of corporations on sales boom
and decreasing operational costs with the aid of adopting ML and AI. Automating business
techniques and improving customer experience are the 2 primary industrial use cases of AI and
ML inside the contemporary scenario. The virtual shift and penetration of clever devices have
given start to patron-centric business systems, where businesses are targeted on offering a
customized and custom designed enjoy to their customers. AI and ML are being drastically
utilized in cybersecurity practices. The report says that the role of device learning and deep
gaining knowledge of in detecting anomalies the use of behavioral evaluation and gives several
examples of companies using ML to come across attacks and mitigate risks.
Companies pouring money into growing gadget gaining knowledge of techniques are
awaiting redefining their business with the aid of embracing automation. Still, many companies
are lagging and living out of legacy systems. The rising want for statistics technology and
analytics will urge agencies to accept and undertake disruptive techs like ML and synthetic

intelligence (Companies are Investing in Machine Learning in 2021. Why?, 2021). The
discipline of synthetic intelligence and gadget gaining knowledge of has skilled several floor-
breaking improvements at some point of latest many years. This has empowered AI system
mastering strategies the capability to exhibit promising results in many regions, along with that
of industries. Here is a gist of the way corporations are making AI and ML paintings for them of
their enterprise procedures and reaping the benefits. Artificial intelligence era can without
difficulty be deployed to handle repetitive tasks like addressing maximum frequently requested
questions and/or monitoring recurring transactions. With this, AI-prepared structures can
efficaciously characteristic as chatbots or customer service retailers, appreciably reducing the
paintings pressure of employees (Behera and et.al., 2021). As a result, human employees can
give attention to other responsibilities that demand for creativity and absolute human presence.
Inventory maintenance can be tedious and time-eating, specifically for a large agency.
Nevertheless, this tremendously simple venture can be automized with minimal attempt, making
AI the first-rate healthy for the category.
Even simple synthetic intelligence and machine gaining knowledge of systems
programmed the usage of much less complicated device getting to know languages can
efficaciously cope with this enterprise technique, typically with minimum or nearly no human
intervention. Present global flourishes with an considerable amount of records. This
announcement is proper regardless of recognize to groups, as they cope with hundreds and heaps
of transactions within a unmarried day. AI aided machines can situation this massive voluminous
facts to crucial analysis and may be educated to extract implicit styles winning from-within. This
capability of machines is visible to be certainly superior in assessment to that of people each in
phrases of time as well as efficiency.
The impact of artificial intelligence on customer satisfaction
Artificial intelligence has impacted the customers’ satisfaction levels to a great extent and
this is because it has helped companies in improving the overall interaction with their customers
as well as other users (Bengel, 2020). There has been a positive impact because with the help of
artificial intelligence or AI, it has become easier to anticipate the needs of the customers in an
effective manner and thus, develop recommendations based on the same. Predictive analytics
allow businesses to assess the stock of every consumer, suggest the right gadgets they’re low on,

and supply them to their houses. Amazon is one of the leading on-line shopping systems which
have successfully carried out AI to make their customers’ purchasing enjoy extra customized.
Autonomous automobiles use deep learning, a subset of gadget studying, to feel and navigate the
surroundings round them. They also keep in mind the consumer’s most commonplace routes and
configuration choices to optimize day by day commutes and journeys. Traditional analytics
strategies honestly don’t cut it when operating with big records. With the assist of AI-enabled
consumer journey analytics, companies can collate and arrange large amounts of consumer facts
left in the back of at unique touchpoints. This information is then automatically analyzed with
correct speech/text analytics and natural language processing (NPL) equipment to find sentiment,
advantage a better understanding of customers’ likes and dislikes, curate the proper messaging,
and convey it at the right time.
Businesses additionally advantage from AI-powered anomaly detection strategies that
permit them to live ahead of the customer, pick out threat areas that they can recognition their
marketing efforts on and make the maximum out in their resources (Bulchand Gidumal, 2020).
As industries an increasing number of get extra aggressive, organizations need to keep up with
the ultra-modern trends and innovations to optimize their operations in advance. The
opportunities are countless with what AI and machine studying technology can do for a business
and it’s handiest going to get higher from here. There are several patron revel in control answers
that percent powerful AI and gadget studying tools to deliver remarkable stories, power sales
growth, and decrease operational expenses. If you are inside the marketplace for one, check out
our targeted review of the exceptional customer experience control solutions, each internet-based
totally and on-premise to make the right decision.
The mixture of AI and device gaining knowledge of for gathering and analyzing social,
historic and behavioral information enables manufacturers to advantage a much greater correct
expertise of its customers. Unlike conventional facts analytics software, AI is constantly learning
and enhancing from the statistics it analyzes, and is capable of expect patron behavior
(Dhanabagiyam, 2020). This allows brands to provide exceedingly relevant content, growth
income possibilities, and enhance the consumer adventure. Real-time decisioning may be used
for more effective marketing to customers. One instance of real-time decisioning is to become
aware of customers that are the usage of advert blockers, and offer them with alternative UI

additives that can hold to interact them. Another is personalised guidelines, which can be used to
present more applicable content to the consumer. By the usage of AI and actual-time decisioning
to recognize and understand a patron’s motive via the data that they produce, in real-time,
manufacturers are capable of present hyper-personalized, applicable content material and offers
to customers. Predictive analytics refers back to the technique of operating with data, facts
mining, and modelling to make predictions. Because AI is ready to investigate large amounts of
facts in a totally quick amount of time, it uses predictive analytics to produce actual-time,
actionable insights that manual the next interactions among a patron and a emblem (Enache,
2020). This is often referred to as predictive engagement, and it requires the understanding of
whilst and a way to interact with each customer, something that AI is superb at. AI and
predictive analytics are capable of cross similarly than ancient facts alone, presenting deeper
insights into what has already passed off, and what can be completed to facilitate a sale thru hints
for associated merchandise and accessories, making the customer enjoy more relevant and more
likely to generate a sale, in addition to offering the patron with a more sense of emotional
reference to a logo.
Different ways in which artificial intelligence can improve customer satisfaction in Marks and
Spencer
Marks and Spencer is one of the leading retailers and market leaders that has a huge
customer base across different geographic locations. Customer service representatives nowadays
are tasked to address a huge variety of purchaser calls on a daily basis (Verganti, Vendraminelli
and Iansiti, 2020). They are also confronted with the mission of reducing the common decision
time for each patron. Chatbots have an important function to play in addressing each these
challenges. Not only can chatbots provide activate solutions with lightning-rapid responses in
actual-time, however they also can reduce the load on human sellers by means of resolving a
excessive quantity of purchaser queries with the best accuracy and human-like conduct
(Fehlmann, 2020). Customers want carrier on their phrases. Brands need to be available and
responsive to customers always at some stage in the year. Automated customer service can make
it viable. It permits agencies to deliver always-on customer support and remedy troubles as soon
as they get up. This way clients will have their inquiries resolved 24 hours a day while not
having to await lengthy intervals to get a response. Not most effective would this pass a long
manner in growing purchaser delight and imparting brilliant customer support, however

additionally enhance emblem recognition and force higher consumer loyalty. Artificial
intelligence can play a large position in augmenting human interactions with customers.
Two of the maximum giant approaches AI is augmenting customer service is thru AI-
augmented messaging and AI e-mail tagging. AI-augmented messaging allows customer service
sellers to deal with a big a part of consumer queries with the help of chatbot assistants. With AI
electronic mail tagging, people can save the time required to read each purchaser electronic mail
via having AI-powered programs experiment emails, tag them, and direct them to the proper
workplace. This would assist the carrier reps shop time and cognizance at the greater complex
tasks that cannot be finished without human intervention.
The company has implemented artificial intelligence in different ways to ensure that the
customers are satisfied and any of their queries are resolved. AI simplifies records accumulating
and unifies it to create a single purchaser view, based totally at the customers’ behavioral
patterns. In the preliminary days, AI was depending on the existing information of the customers,
which was fed manually (Gao, Liu and Mai, 2020). The new generation of AI-powered systems
are more adept at proactively inquiring for information from clients without human intervention.
They can without problems analyze behavioral styles and instantly respond to the needs and
sentiments of the customers. They are brief to respond and recognise whilst exactly to invite
further questions. After collecting the required facts, the AI structures can take a look at the
information and take further actions to manual the customers via their buy adventure (Wang and
et.al., 2021). Businesses that have integrated AI into their systems are now making the most of
information collection and garage and feature reduced the actual-time procedure with none
human intervention. It is essential for corporations to create experiences that emerge as part of
the customers’ lives.
Importance of artificial intelligence for organizations
Artificial intelligence has become one of the key components for organizations because it
helps them in saving time as well as optimizing the day-to-day processes (Gäthke, 2020). Many
businesses are taking up artificial intelligence in their business because it helps them in reducing
their operational costs as well as increase overall efficiency. Machines have more efficiency than
humans and hence, artificial intelligence can help in analyzing large amounts of data within less
amounts of time. This further helps in making informed decisions which are helpful for carrying

out the business processes in an effective manner (The Importance of Artificial Intelligence in
Business, 2021). Chatbots that are implemented by organizations that are driven by artificial
intelligence and help in resolving the issues as well as concerns of the customers online.
Artificial intelligence has enabled the companies to automate their communications with the
customers to a great extent. the main benefit of this is that the company can interact with a large
number of customers and develop an understanding of the concerns or queries that are raised by
them. Another reason why artificial intelligence is important for businesses is that it enhances the
overall productivity of the firm. This is because the overall manual labor is reduced, so the
employees are able to focus on the individual tasks that are assigned to them. artificial
intelligence also helps in reducing the errors so that the tasks can be carried out in an efficient
manner.
Businesses that have implemented artificial intelligence in their workplace, are able to
provide their customers with better experiences (Huang and Rust, 2021). This is because they are
able to develop a better understanding of their needs as well as preferences in an effective way.
Apart from this, real time assistance is also provided to the customers and also, decisions that are
made, help the company in gaining a competitive advantage against other players in the market.
Artificial intelligence is also beneficial for the companies because it can be used to control robots
in factories or maintain ideal heating temperatures (Wichmann, Willemink and De Cecco, 2020).
Businesses today are working towards improving their overall efficiency in order to build a
strong brand image. Marks and Spencer, which is one of the leading retailers in the market has
implemented artificial intelligence in its system in order to improve the customers’ experience as
well as make better decisions and strategies. Apart from this, artificial intelligence also helps in
predicting outcomes which is one of the most important things for the businesses. Also, there is
an improvement in the overall recruitment process for the business as only qualified as well as
experienced candidates are hired for carrying out the vacant jobs in the workplace (Jennings,
2020). Artificial intelligence also helps in keeping a track of the customer demand so that
appropriate strategies can be developed and implemented. Customers are also increasingly
becoming concerned about the environment and hence, artificial intelligence helps in solving
issues related with the environment.

Today, artificial intelligence has become a key component for the overall success of the
business. This is because it helps in automating the marketing processes that further help in
increasing overall sales of the company. Artificial intelligence has made it easier for the
businesses to understand the patterns of customers buying behavior and thus, market the products
accordingly. It can be said that AI has smoothen out the overall marketing process of the
businesses, allowing them to gain a competitive advantage against the competitors. As a result,
there is an increase in the sales as well as the businesses are able to adjust the prices of their
products based on the preferences as well as demand for the products in the market. Besides this,
artificial intelligence also enhances the overall efficiency of a business. Modern businesses are
focused towards improving their efficiency as well as gaining an increased level of performance.
Businesses have large amounts of data that needs to be kept safe and protected from getting
misused. And artificial intelligence helps organizations in protecting the data as well as
preventing fraud. Therefore, it can be said that artificial intelligence has become a key
component for modern day businesses and organizations.
Opportunities for artificial intelligence in business
As already mentioned, artificial intelligence has become a key component for the
businesses and it is only expected to grow further. It can be said that there are different
opportunities for artificial intelligence in businesses because of the large number of advantages
that it has (KALARANI, 2021). A lot of businesses have introduced new job roles that involve
the candidates to have effective knowledge as well as experience in the field of AI. Apart from
this, artificial intelligence has the opportunity to enable the development of new products as well
as services in an effective manner. This can be one of the major opportunities for businesses
because the customers’ needs as well as preferences are changing at a fast pace. Not only this, AI
can also contribute towards making the workplaces safer for the employees because of the
outbreak of the pandemic. Unnecessary costs as well as expenses can be eliminated with the
effective implementation of artificial intelligence in businesses. (Khatri and et.al., 2020).
Artificial intelligence is also used for solving problems in the business that can arise sometimes.
AI also enables innovation for the businesses allowing them to conduct their business operations
in a much more efficient manner. This leads to an increase in the sales of the business as well as
helps it in gaining a competitive advantage against others. It can be said that artificial
intelligence can set to be an enabler of innovation for the organizations.