Impact of IT on Business: A Case Study of Amazon's Use of Artificial Intelligence

This report explores the impact of IT on businesses, with a focus on Amazon's use of artificial intelligence. It provides an overview of Amazon's existing operations, how AI is prominent for their business survival, and how they exploit AI. The report concludes with recommendations for improving logistics and supply chain management through effective use of AI.

IT impact on
business

Table of Contents
INTRODUCTION...............................................................................................................3
TASK..................................................................................................................................3
A brief overview of the existing operation of the E-commerce store........................3
Artificial intelligence is prominent for the survival of business..................................4
How the chosen firm exploits artificial intelligence....................................................6
CONCLUSION...................................................................................................................8
RECOMMENDATION........................................................................................................9
REFERENCES................................................................................................................10
Books and Journals:................................................................................................10
Online:.....................................................................................................................10

INTRODUCTION
The IT industry delivers a significant impact on businesses. There is no doubt
that innovation and advancement in technology influences the business organizations.
Both kind of organizations such as small and big firms have benefited from the raiment
of the modern technology and attained a competitive edge in the potential
marketplaces. Many global firms such as Amazon have invested in the modern
technology and become innovative boosted their market share, along with fiscal figures
(Clube and Tennant, 2020). IT plays a prominent role as it gives the chance of
analysing certain data and move to the appropriate path of the business. Amazon is an
American global firm which concentrates on digital streaming, e-commerce, artificial
intelligence, along with cloud computing. It was introduced by Jeff Bezos on 5 th July,
1994. This report will provide the brief overview of the present operation of Amazon. It
will also how AI is prominent their business survival. Later, it shows how the
organization utilises their artificial intelligence in their business.
TASK
A brief overview of the existing operation of the E-commerce store.
Amazon has been known as one of the most successful organizations in the
whole world. The key strategies that the company follows is to invest in technologies,
enhancing its web services by fulfilment capacity, improving its logistics applications,
M&A strategy, securing its inventions with the use of patents, R&D activities in logistics.
Amazon become more successful when it goes beyond than an e-commerce retailer. It
is a diversified company so that level of its patents can be very immense. The chosen e-
commerce business had filed patents for several technologies such as cloud computing
which is one of their biggest source of revenue. It had started filing patent for speech
analysis (Alexa), Augmented Reality. It is also seen in artificial intelligence and logistics.
Moreover to this, E-commerce applications and media entertainment maintains a good
amount of share of the Amazon Patent Portfolio. Due to the rise in technologies,
Amazon has been investing in drone and robotic technologies for many past years. It is
seen the warehouse of the business has more than 45000 robots which helps in
packing and picking process (Glikson and Woolley, 2020). On the other side, Amazon is

also performing research for the drone initiatives as well as future service of drone
deliveries. It is seen that in Britain, this e-commerce business has started its drone
delivery under Amazon Prime Air. It has also started in US as well. The management
said that they desired to create new opportunities as well as commercial exploitations
for the drones for developing jobs. Amazon also attempts to focus on machine learning
and artificial intelligence to improve their customer experience. This business introduced
Alexa in 2017 and surprisingly it became a big attainment in the history. This is AI
infused voice assistant which has been giving stiff competition to its key competitors
such as Apple or Google. Fire TV set-top box was introduced with microphones
enclosed in the device so customers can yell Alexa commands throughout their homes.
Amazon Web Services also acquired and invested in businesses in the cloud computing
space. Companies such as Thinkbox, GameSparks, Harvest.ai. and much more have
strengthen its AWS cloud business. Amazon also investing in TV series as well as
movies either by production and acquisition so that its prime customers can utilize their
streaming services. With the help of modern technologies, it has announced Amazon
Logistic app which strengthen its delivery and logistics network. The company has
launched developing an app to support truck drivers to pick up as well as drop off the
parcels at their warehouses (Amazon Business Strategy: Insights of its operation and
investment plan to become the top Fortune 500 company, 2022).
Artificial intelligence is prominent for the survival of business.
Artificial intelligence technologies are highly influencing the corporate world. It is
a wide term that defines to any form of computer software that involves in humanlike
activities such as problem solving, planning as well as learning. AI has different types
which is prevailing in businesses. In addition to Amazon, the discussion is further:
 Machine learning: It is one of the most common forms of AI in development for
organizational purposes in present times. This is mainly used to process big
amounts of data on quick basis. These are algorithms that shows to “learn” over
time. It is found that when they could not able to grow its business, optimize its
logistic quality and speed, enhance its customer experience. Amazon began
AWS to let other business to enjoy the similar IT infrastructure with cost benefits

and agility, and now continues to modify machine learning technology to the
hands of all organization (Jackson, 2019).
 Deep learning: It relies on neural networks to involve in what is identified as
non-linear reasoning. It is critical to performing more modernised functions such
as fraud detection. It makes more impact on the business performance as more
data is get. It helps companies to get more detailed and scalable information.
Amazon virtual assistant and Alexa are created to get a request, along with a
response. With the deep learning, the system can determine what was uttered
and the objective.
How Amazon benefits from artificial intelligence:
 Personalised customer experience: With the help of actionable sales
intelligence, company can examine a certain customer, pre, during and post
behaviour purchase. It helps Amazon to develop more customised experiences
and develop a sort of customer engagement at every single interaction.
 Efficient sales process: An effective AI driven customer relationship
management can handle and multitask all business actions. Sales teams are
exploiting AI to receive to know their buyers better and offer tailored resolutions.
Amazon is using artificial intelligence to know their customer choices and
preferences to personalise the goods and provide only the ones which can be the
appropriate fit (Jafari-Sadeghi and et.al., 2021).
 Virtual assistance: Virtual assistance and chatbots can possesses a very
important role in how buyers are interacting with technology. In the future, virtual
assistants could become an essential part of the regular lives and more
businesses are going to exploit to take their customer services to enhanced
extent. A chatbot software is used by Amazon where it enables human chat or
conversation with users over websites, phones or mobile apps and many more.
 Market and customer insights: Predictive analysis can be applied to the
information collected from web matrix system matrix and social media to develop
a better and improved product. The chosen company can take customer
experience to beyond level through customer insights. Also, the organization can
investigate opportunities to work on a diverse though process and creative

business solutions for the growth (Artificial Intelligence - The Key to Business
Survival, 2020).
 Boost revenue with product recommendations: AI helps in suggesting the
products or data to buyers based on certain analysis methods. Whether, it can be
on an advertisements, e-commerce website or emails, a product
recommendation intends to give buying decisions by assisting customer identify
goods that fits with their requirements. Amazon recommends multiple products
from segments the customers have been browsing. The main objective is put
goods in front of them that they will possible to click and purchase. It has a deep
focus on data driven decision-making and big data analytics.
 Create the best content marketing strategy: An unimaginable amount of
customers are looking online for goods and services every second. The company
is require to position the business in front of their customers. Content marketing
defines the technique for attracting, delighting and engaging customers by
delivering valuable content. The content marketing has several forms and types
such as social media posts, blogs, videos, case studies, podcasts, eBooks,
webinars, how-to-guides, email marketing and much more. Amazon also uses
content marketing for positioning their business such as they use email
marketing and social media posts for their business.
 Save time and reduce costs: AI facilitates businesses to automate a range of
processes, help enhance productivity and free up employee's time. Through
automating repetitive tasks artificial intelligence can attain higher output in
minimum time at reduced costs. Amazon uses human assisted AI in order handle
regular accounting tasks such as financial reporting, bill paying and so forth. It is
automated bookkeeping assistance to company.
How the chosen firm exploits artificial intelligence.
Artificial intelligence is the most significant aspect of the Amazon business. This
organization adopts artificial intelligence applications across logistics, warehousing, e-
commerce, and many more. From an article published by Megan Jarrell (2021), it has
been explored that the current AI use by Amazon in its e-commerce business in mainly
two aspects:

 Personalised product recommendations: The chosen e-commerce business
enables personalised product recommendations as their marketing strategy that
provides their business to continue to win a more vital market share and proceed
fulfilling the demands of customers in a more accurate way (Jehan and et.al.,
2020). The business exploits item to item collaborative filtering. It is researched
that employees who worked on the company's recommendation algorithm, this
works by fitting each user's former purchase to same items. It is used to
recommend similar goods that are more closely suitable with what the customer
is likely to purchase .
 Alexa enabled voice shopping: The respective business claims that its voice
assistant Alexa allows customers to know and buy items and pass through the
review flow with voice prompts rather than just click or tap on to screen. Amazon
lets users to control their experience of checkout hands-free. Overall, it can be
said that AI app intends to boost the customer's convenience in order to shop on
Amazon, from evolving a shopping list to receiving recommendations from Alexa.
It can be said that investment in AI allows the business to solidify their market
place by keeping their position in indulging convenience for customers (Kang,
Diao and Zanini, 2020). For example, if the user shout at Alexa enabled device to
play Harry Potter, the known content would be play associating to the movie. The

user can enable Alexa and start listing items they would like to hunt for, purchase
or add to their cart of shopping. When the goods are added to their shopping cart
through Alexa voice shopping, they can use text version to make modifications if
needed (How Amazon Uses AI in eCommerce – Two Use-Cases, 2021).
CONCLUSION
It has been concluded from the above report is that IT industry have a strong
impact on the businesses all over the world. It has served its benefits to all kinds of
firms whether it is small or big. Information technology supports organization by offering
innovation and modern technology for their business growth and development. Artificial
intelligence act as a humanlike activities which focuses on reducing the errors, resolving
issues, planning as well as learning. It provides businesses to giver customised
experiences to their users. Also, offers innovation and growth in the business. Amazon
as a multinational e-commerce business takes many benefits from the artificial
intelligence.

RECOMMENDATION
The recommendation is to make the trade and commerce more mobile friendly.
Mobile e-commerce is increasing day by day and on rapid basis. Customer are
purchasing more from the smart phones, it is essential and prominent for the e-
commerce like Amazon to ensure their store is mobile friendly. It is necessary to be sure
to check the effectiveness and friendliness of mobile. As the pandemic drove human
away from physical shopping, but it did not diverge the facet that customers wishes free,
fast, environmentally conscious shipping. Hence, Amazon should improve their logistics
and supply chain management by effectively use the AI in business.

REFERENCES
Books and Journals:
Clube, R. K. and Tennant, M., 2020. Exploring garment rental as a sustainable business
model in the fashion industry: Does contamination impact the consumption
experience?. Journal of Consumer Behaviour. 19(4). pp.359-370.
Glikson, E. and Woolley, A. W., 2020. Human trust in artificial intelligence: Review of
empirical research. Academy of Management Annals. 14(2). pp.627-660.
Jackson, P. C., 2019. Introduction to artificial intelligence. Courier Dover Publications.
Jafari-Sadeghi, V. and et.al., 2021. Exploring the impact of digital transformation on
technology entrepreneurship and technological market expansion: The role of
technology readiness, exploration and exploitation. Journal of Business
Research. 124. pp.100-111.
Jehan, N. and et.al., 2020. Relationship between organisational virtue and perceived
role of ethics and perception of social responsibility in business: testing a
mediation model. International Journal of Business Governance and
Ethics. 14(2). pp.166-180.
Kang, J., Diao, Z. and Zanini, M. T., 2020. Business-to-business marketing responses
to COVID-19 crisis: a business process perspective. Marketing Intelligence &
Planning.
Kwilinski, A. and et.al., 2019. Formation of the entrepreneurship model of e-business in
the context of the introduction of information and communication
technologies. Journal of Entrepreneurship Education. 22. pp.1-7.
Online:
Amazon Business Strategy: Insights of its operation and investment plan to become the
top Fortune 500 company, 2022. [Online] Available through:
<https://www.greyb.com/amazon-business-strategy/>
Artificial Intelligence - The Key to Business Survival, 2020. [Online] Available through:
<https://www.mindworxsoftware.com/the-key-to-business-survival.html>

How Amazon Uses AI in eCommerce – Two Use-Cases, 2021. [Online] Available
through: <https://emerj.com/ai-sector-overviews/artificial-intelligence-at-
amazon/>