Application of Artificial Intelligence in Retail Sector

This report discusses the importance and development of AI in retail sector, technologies used, various technological platforms and software, businesses using AI, and its effectiveness as a business tool. It also explores the relationship between digital technologies and management theories.

BM 565 Digital Business & New
Technologies

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Importance of the topic................................................................................................................1
Development of the topic.............................................................................................................1
Technologies used in the topic.....................................................................................................1
Various technological platforms and software............................................................................2
Businesses using AI.....................................................................................................................2
Using AI as business tool and its effectiveness...........................................................................3
Relationship between digital technologies with new and old business management theories....3
CONCLUSION................................................................................................................................6
REFERENCE...................................................................................................................................7

INTRODUCTION
Technology is playing vital role in upgrading businesses. Nowadays company's are dependent
on business for their business operations. This report is based on the topic which is application
of artificial intelligence in retail sector. This study will discuss importance and development of
the topic. Further it will shed light on technological platforms used in the topic and how
organisations are business technology. This report will also discuss the relationship between
digital technologies and business and management theories.
MAIN BODY
Importance of the topic
Application of artificial intelligence (AI) is important because it helps in making business
operations smooth and effective. The study on this topic is also done less so it will be fruitful to
carry the study on this topic (Sathananthan and et.al., 2017). AI does not only saves time of the
organization but also helps company in achieving their goals. In today's world it has become
impossible to lead life without using AI. In retail sector there are various business activities in
which AI played vital role in carrying everything smoothly.
Development of the topic
AI combined large data or information with speed and intelligent algorithms so that software can
work automatically by using patterns from the data. AI has developed in order to fulfil business
needs. Nowadays business especially retail business require AI so that they can carry complex
business tasks. More over this topic has developed so that more business can get understanding
about the importance of AI in their business.
Technologies used in the topic
the technologies which are used in AI are speech recognition which converts human voice into
some format so that computer application can process it. This technology are widely used by the
business because it make business functions smooth. Another technology is machine learning
platforms whose main aim is to develop advanced techniques so that business can use that
specific techniques in order to carry their business effectively. Machine learning concept is
becoming famous because they uses algorithms, training tools, applications etc. virtual agents
is also the technology which comes under AI. Virtual agent is basically the computer program
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which has the capability to interact with humans. There are lot of companies which provide this
services which are Amazon, Apple etc.
All the technologies which comes under AI is used by the business because AI has become need
of the business (Witkowski, Koralewska and Huk, 2020). In order to gain competitive advantage
it is important for the business to use artificial intelligence in their business operations.
Various technological platforms and software
google AI platform-
AI platforms makes the work easy for data scientists, data engineers etc as they carry their
projects quickly and also it is less costly. With the help of this platform company can run their
very own machine learning applications.
Tensor flow-
it is the kind of software which uses graphs for numerical computation. In the graphs, nodes
represents mathematical operations while the edges in the graph shows tensors. This software
was developed by the engineers which was concerned about machine intelligence research.
Rainbird-
it is one of the AI platform which helps in making business operations effective and smarter.
Under this, systems are build by the experts which have human like decision making capabilities
which brings good quality of work. This system have such programs installed which automatic
process human decisions. It can be said that this technological system provides human touch.
Businesses using AI
almost every business whether it is small or large organization are using artificial intelligence in
their business operations (Pamungkas and et.al., 2020). Mostly e commerce business are using
technologies because they have digital platforms which runs bys using various technologies. AI
only have made possible to run e commerce businesses as they have advanced technologies
which carries business operations effectively. Every business are adopting advantages
technology because now businesses have understood the importance of technology. Businesses
who have still restricted the use of technology are reducing their competitive advantages.
With the help of artificial intelligence company can handle many customer requests. As it can
route all the calls to those employees which can handle the calls properly. Retailers are also
using AI for product selection, store design, monitoring store activities etc. as retail companies
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have to undergo various business activities so in order to met deadlines the use of advanced
technology in today's world is essential.
Using AI as business tool and its effectiveness.
AI is widely used as the important business tool because it simplifies the work. Example virtual
assistant programs which is helpful in giving real time support to the business. With the help of
this program business can solve the queries of their customers. AI is utilized in business
everyday. It helps business in doing workflow management and also for future predictions.
Retail sector can predict their sales in the future by using AI tools and techniques. It has smart
sensors which automate the workloads (Prasetyo and et.al., 2021). It further helps in enhancing
manufacturing outputs. When production process automated than definitely output will get
increased. It also saves business from various frauds. As nowadays business are more prone to
risks and frauds. AI helps business by safeguarding them from various business risks. By
predicting future sales, AI can help business to articulate their performance. It also manage and
evaluate large business information and simplifies them so that it can be effectively used for
making important business decisions.
Relationship between digital technologies with new and old business management theories.
Business theories or models are helpful for capturing business values for the customers as well
for the businesses. Single organization or the group of companies utilizes the technical platform
in order to provide value to the organization. Industries especially retail industry experiments
with business theories and digital transformation regarding big data and social media (Štefko
and et.al., 2019). Management theories are also developed with the aim of making changes in
the business world and digital technologies also helps business in making their processes smooth
and effective. Digital technologies are opening new opportunities for the business likewise
management theories are also provides right direction to the business. Moreover management
theories guides business in regards of which digital technology they should have used for
achieving their business goals.
Management and business theories are as follows:
systems theory-
this is the old management theory which means that business is a system and is run by certain
rules and regulations which affect the entire organisation (Soegoto and Eliana, 2018). Under this
theory every task is important and should have completed within given time frame than only
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company will fulfil their objectives timely. Digital technology helps business in completing their
tasks timely because digital technology have such programs which businesses uses to carry their
function effectively and efficiently.
Bureaucratic management theory-
as per this theory business should have run with proper hierarchical structure with the rules and
regulations. Managers of the organisation should have assigned task according to the capabilities
of the workforces. In organisation hierarchical chain of command should flow. Instructions
should be given top to bottom so that work can be done effectively (Volkova and et.al., 2021).
Workforce hiring should be done on the basis of the performance and efficiencies and not on
personal relationships. This theory says that organisation should have run with laid rules and
regulations. It can be said that there is relationship between this management theory and digital
technology because in digital technology also everything flows with proper line of command. As
in technology one program will run after one another so, everyone flows with proper
synchronization.
Scientific management theory-
this theory motivates specialization, standardisation and tasks based on the ability and proper
supervision. If business will use proper management practice and structure than only they can
achieve productivity and efficiency. This theory provides way to complete the task by using
human resources properly. This theory focus much on employee training and productivity.
Likewise digital technology also adopted by the organisation so that their employees can get
help out of that. When employees will use digital technology than they will able to complete
their task more effectively and efficiently. The use of technology in delivering the task will
automatically increases the productivity of their employees. As by using technology it will
become easy for employees to meet deadlines.
Theories X and theories Y-
as per theory X, they assume that there are those employees which are demotivated and does not
like their work. So managers are authoritarian and manages everything by themselves only
(Nair, 2017). Managers provide instructions to the employees which they have to listen while
carrying the business activities. As managers don't trust their employees so every decisions are
taken by them only.
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According to theory Y employees are responsible and motivated. Employees are very creative
and concentrate and work hard so that company's goals can be achieved. Their managers also
include the employees in the decision making process so that they can get innovative ideas for
their young talent.
Theory Y have relationship with digital technology because digital technology motivates
employees. As technology helps in making work faster and effective. When employees feels that
they are fulfilling their tasks on time with the help of technology than they motivate. Motivation
helps in raising productivity of the employees (Arora and et.al., 2020). Every management
structure requires digital technology because it has become need for the business. Now business
is associated with technology they are no longer different.
Human relations theory-
this theory mostly concentrate on the human behaviour. Human resource are the most important
asset for the company so it is important that employees remain happy with their organisation. In
order to motivate employees it is important that they should have given effective workplace
environment. It is the responsibility of the organisation to fulfil needs of their employees. They
should have given proper break time, holidays etc. so that they can able to balance their work
and life properly. Company should have make efforts to improve their worker's satisfaction.
This theory says that employees can get motivated through social factors like money, working
environment, rewards etc. human relations theory have relation with digital technology (Freitas
Junior, Maçada and Brinkhues, 2017). As digital technology helps employees in completing
their work accurately and in timely manner. Technology easily connected employees with one
another which brings collaboration and cooperation. Digital technology also makes employee
advance and improve their existing skills. Basically digital technology makes employee smart so
that goals of the company can be easily achieved.
Modern management theory-
this is the upgraded version of classical theory. Modern businesses are facing various
complexities and they operate under major pressure of competition. Technology is the solution
for facing complexities. Businesses which uses modern management theory in their operations
so that they can deal with modern organisation. Statistical techniques are used in this theory so
that employees and managers relations can be understand (The 11 Most Important Management
Theories For Small Business., 2021). As per classical theory employees only work for money
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but as per the modern theory employees are not motivated with money only but it requires many
things like satisfaction, effective working environment, happiness, proper work life balance etc.
modern workplace have also understood that providing money to the employees is not the
solution of retaining them because now the needs of employees is not only limited with money
but it has evolved.
CONCLUSION
Through this report it can be concluded that artificial intelligence has not the restricted use but
nowadays it has been used by every organisation. This topic is selected for the purpose of
research because businesses which are not using AI in their operations will understand the
importance of AI. There are various technologies which comes under AI which are virtual
assistant, speech recognition etc. all the technological platforms which comes under AI helps
company in carrying their business properly. The use of AI has enhanced, now it has become
business tool. Report has also discussed in detail the relation between digital technologies and
management practice, theories and practices. Management theories which are discussed in this
report are bureaucratic theory, systems theory etc.
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REFERENCE
Books and Journals
Arora, A. and et.al., 2020. Building an e-commerce business: Lessons on moving
fast. McKinsey Digital.
Freitas Junior, J.C.D.S., Maçada, A.C.G. and Brinkhues, R.A., 2017. Digital capabilities as key
to digital business performance.
Nair, K.S., 2017. Impact of e-commerce on global business and opportunities-A Conceptual
Study. Int. J. Adv. Eng. Manag. Res.
Pamungkas, D.B.A. and et.al., 2020. E-COMMERCE BUSINESS DIGITAL
TRANSFORMATION. PalArch's Journal of Archaeology of
Egypt/Egyptology. 17(10). pp.864-874.
Prasetyo, J.H. and et.al., 2021. E-COMMERCE: THE IMPORTANCE ROLE OF CUSTOMER
PERCEIVED VALUE IN INCREASING ONLINE REPURCHASE
INTENTION. Dinasti International Journal of Digital Business Management. 2(6).
pp.955-962.
Sathananthan, S. and et.al., 2017, November. Realizing digital transformation through a digital
business model design process. In 2017 Internet of Things Business Models, Users,
and Networks (pp. 1-8). IEEE.
Soegoto, E.S. and Eliana, E., 2018, August. E-Commerce and business social media today.
In IOP Conference Series: Materials Science and Engineering (Vol. 407, No. 1, p.
012034). IOP Publishing.
Štefko, R. and et.al., 2019. Analysis of consumer preferences related to the use of digital
devices in the e-commerce dimension. Entrepreneurship and Sustainability
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Volkova, N. and et.al., 2021. Dankanych Development trends of the digital economy: e-
business, e-commerce.
Witkowski, K., Koralewska, M. and Huk, K., 2020. Logistics models in E-commerce. Vedecké
Práce Materiálovotechnologickej Fakulty Slovenskej Technickej Univerzity v
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Online
The 11 Most Important Management Theories For Small Business., 2021. [Online]. Available
through: <https://getsling.com/blog/management-theories/>
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