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Artificial Intelligence in E-commerce: A Literature Review

   

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Artificial Intelligence in E-commerce: A Literature Review
Chapter · July 2022
DOI: 10.1007/978-981-16-9113-3_50
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Richard Fedorko
University of Presov in Presov
80 PUBLICATIONS 820 CITATIONS
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Štefan Kráľ
University of Presov in Presov
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Radovan Bačík
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Artificial Intelligence in E-commerce: A Literature Review_1

Artificial Intelligence in E-commerce:
A Literature Review
Richard Fedorko , Štefan Kráˇl , and Radovan Baˇcík
Abstract With the development of information and communication technologies,
artificial intelligence is becoming increasingly popular. The main aim of companies
in today’s e-commerce world is to influence customer behavior in favor of certain
products and brands. The application of artificial intelligence as an innovative tool
in the field of e-commerce may seem as a positive step forward. The paper focuses
on the description of the essence of e-commerce and artificial intelligence and their
benefits. The aim is also to evaluate the importance of artificial intelligence and its
use in the context of e-commerce based on available studies on this issue.
Keywords Artificial intelligence · AI · Machine learning · E-commerce ·
Electronic commerce
1 E-commerce and Artificial Intelligence
The modern information age brings along new possibilities, software, and technolog-
ical innovations usable in marketing and shopping. New technologies force compa-
nies to be more creative [1]. Technologies help increase the efficiency, quality, and
cost-effectiveness of services provided by businesses [2]. Contemporary creativity is
based primarily on the development of the so-called information and communication
technologies, which have a major impact on the development of the business environ-
ment. The effectiveness of information and communication technologies depends on
several factors, such as investment in human capital and an appropriate combination
of e-commerce solutions [3]. One sector where the digital transition and importance
of e-commerce are particularly pronounced is retail, where digital tools, such as Web
sites, replace (to a certain extent), or complement physical commerce [4].
R. Fedorko (B) · Š. Kráˇl · R. Baˇcík
Faculty of Management, University of Presov, Konštantínova 16, 080 01 Prešov, Slovakia
e-mail: richard.fedorko@unipo.sk
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022
M. Saraswat et al. (eds.), Congress on Intelligent Systems, Lecture Notes on Data
Engineering and Communications Technologies 111,
https://doi.org/10.1007/978-981-16-9113-3_50
677
Artificial Intelligence in E-commerce: A Literature Review_2

678 R. Fedorko et al.
1.1 Meaning of E-commerce
Since being described for the first time in the 1980s, e-commerce has become a
global growing trend and is now one of the most popular online activities [5]. The
development of the Internet and the advancement of digital technologies has led to
changes in consumer behavior. Now, people are increasingly using e-commerce to
make purchases [6].
Electronic commerce, or e-commerce for short, means commerce that takes place
in the online environment of the Internet, with the Internet being considered as a
single platform that connects the seller and the buyer [7]. According to Ullman [8],
e-commerce includes all commercial transactions carried out online. This category
includes any Web site displayed on computers, tablets, as well as mobile phones,
which is intended to generate revenue.
E-commerce includes the use of the Internet, Web portals, mobile applications,
and browsers to make a purchase. These are therefore digitally enabled business
transactions between sellers and customers. Almost all Internet users are currently
online shoppers [9].
The advantages of e-commerce for online retailers (see Fig. 1) lie mainly in a
larger number of customers served, a larger number of orders and better provision
of information. Online retailers can run an online store at lower operating costs than
a brick-and-mortar store, which in turn translates into higher sales [10].
Ganapathi [11] states that online shopping offers several benefits to customers
(see Fig. 2). The customer does not have to physically visit the brick-and-mortar
shop, which saves time. The consumer has the opportunity to choose from a wide
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Artificial Intelligence in E-commerce: A Literature Review_3

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Fig. 2 Advantages of e-commerce for customers
range of products and also the possibility to compare products or prices. Online stores
also offer customers discounts that cannot be obtained in a brick-and-mortar store.
The big advantage is 24/7 availability, so the online consumer can make a purchase
anytime and anywhere.
E-commerce is the result of economic, scientific, technological, and cultural devel-
opment. The development of e-commerce is changing the way businesses do busi-
ness as well as consumer behavior and is making a significant contribution to the
progress of the global economy [12]. As the importance of the Internet is growing,
online commerce provides a competitive advantage to those who sell online. Internet
commerce gives all businesses in the world access to a global online market in which
they generally have the same chance to compete with each other [13]. Consumers
are now imposing new requirements and businesses are constantly exposed to chal-
lenges of how to meet these requirements. The implementation of e-commerce in the
company requires fundamental changes to be made in the current business models
and business activities, as well as the implementation and use of sophisticated digital
technologies [14].
1.2 Meaning of Artificial Intelligence
Thanks to artificial intelligence, technical systems are able to distinguish the envi-
ronment in which they find themselves, recognize the problem, and solve it, while
Artificial Intelligence in E-commerce: A Literature Review_4

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