Artificial Intelligence in Retail Industry: Importance, Type, Use and Role as a Business Tool

This report emphasizes on the utilization of artificial intelligence in the retail industry wherein its importance, type, use and role as a business tool will be focused along with association amid digital technologies and both old and newly emerging theories will also be included.

Digital Business & New
Technologies

CONTENTS
INTRODUCTION......................................................................................................................1
DISCUSSION............................................................................................................................1
Importance of the topic...........................................................................................................1
Evolution of the topic.............................................................................................................1
Description of the technology utilized...................................................................................2
Technological and software platforms used...........................................................................2
Type of business or firms use this technology.......................................................................3
Artificial intelligence as a business tool and its effectiveness...............................................3
RELATIONSHIP BETWEEN OLD AND NEW EMERGING THEORIES ON BUSINESS
AND MANAGEMENT STRUCTURES...................................................................................3
Scientific management theory................................................................................................3
Bureaucratic management approach.......................................................................................4
Contingency theory................................................................................................................4
System theory.........................................................................................................................5
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................6

INTRODUCTION
Technology being referred as the utilization of knowledge as well as science for
varied practical determination and also for resolving varied issues. The rising level of
advancement of technology in the modern world has significantly paved the way for
assortment of multi0functional devices and innovations like smart watches, computers,
automated supply chain, wireless system and so forth (Nadkarni and Prügl, 2021). This has
made the life of people quite easy and simple. Once such innovation is artificial intelligence
which is now being deployed in many industries generating huge demand of skilled
workforce. Based on the this, the main aim of the current research report is to emphasize on
the utilization of artificial intelligence in the retail industry wherein its importance, type, use
and role as a business tool will be focused along with association amid digital technologies
and both old and newly emerging theories will also be included.
DISCUSSION
Importance of the topic
Speaking about artificial intelligence, it has replaced the individual driven as well as
redundant evaluation. it is more expedient procedure which makes sure steadiness in the retail
industry. The retail industry can make use of this technology along with advanced algorithms
for realizing the requirements of the clients on the basis of different things, for example social
media behaviour, patterns of purchasing things, information related to demographics etc. on
the other side, the automated supply chain will also support the retail firms in decreasing their
operational costs as it will render a supportive hand on reducing the cost of inventory, labour,
warehousing and overhead. Artificial intelligence will also help the retail firms in decreasing
the errors concerned with the manual process and will offer accurate data. Thus, it is quite
crucial for this industry (Jain and Ranjan, 2020).
Evolution of the topic
There has been improvement in the efficiency, accuracy as well as pace throughout
the different branches of the retail business because of the integration of artificial intelligence
and machine learning solutions. Further, these solutions in the supply chain, retail and other
sectors have enhanced and permitted the businesses with high level of data which is majorly
leveraged into novel business prospects and enhanced operations of retail. Moreover, with the
support of the artificial intelligence, the retail industry is not in a position to offer extra-
ordinary services to their clients. for surviving in this competitive marketplace, the firms in
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the retail sector are required to differentiate their products and must bring convincing services
to the patrons. In addition to this, the artificial intelligence has assisted the retail firms in
optimizing the labour scheduling and delivery tracking. There are number of traditional retail
outlets in UK such as discount stores and fashion shops etc. are making announcement
related to their plans for closing their operations as they are not in a position to offer the same
result as online stores, however the AI has allowed supply chain and logistics management
play a crucial role in predicting and reacting to different alterations in needs of the clients,
demand, present space in inventory and capabilities of the supplier (Bharadwaj and et.al.,
2019).
Description of the technology utilized
Articulating in relation with the artificial intelligence, it effectively combines
computer science as well as rebuts databases in order to solve assortment of issue and it also
supports in encompassing sub-fields of profound knowledge and machine learning which are
stated regularly in concurrence with the artificial intelligence. The supply chain of the retail
organizations has majorly six important elements that is planification, sourcing, producing,
distributing, return and finally, enablement. Further, the automated supply chain is referred as
the utilization of AI for streamlining the processes, connecting applications and making
improvements in the efficiencies within the operations of the supply chain. Additionally,
machine learning as a sub-section of artificial intelligence is recognized as a procedure of
application as well as designing of algorithms which can support in gathering crucial data
from past situations or cases. Profound learning is also a sub-section of AI that encompasses
predictive statistics as well as modelling.
Technological and software platforms used
There are varied technological platforms which can be referred as artificial
intelligence platforms and all of these platforms are crucial for the companies to shape,
organize and manage profound learning as well as machine learning models. Some of the
most famous AI platforms are Microsoft Azure, Data robot, Google cloud AI, Amazon AI
and so forth. Further, the amazon AI services has supported in adding artificial intelligence to
varied applications and its needs lesser skills and abilities of machine learning (Cath and
et.al., 2018). On the other side, the Microsoft AI platforms has allowed different
characteristics such as speech understanding, prediction as well as picture analytics. Data
robot has supported in offering centrally controlled platforms that allows the AI to derive
enhanced results from the business. Google cloud artificial intelligence has three major
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elements that is REST API, google cloud platform console and gcloud. All these elements
help in predication of advanced models, training and version management using TensorFlow
and SKLearn.
Type of business or firms use this technology
There are more than fifty percent of the firms who are making use of this automation
and different business to business firms have also planned for adopting this technology in the
near future. Different firms in retail, information technology, construction, financial business
such as Amazon, Apple, Facebook, Microsoft, Walmart, Tesco, Shutter stock, AirWorks etc.
are utilizing this technology. There are two major benefits that these companies are gaining
from AI and these are higher level of productivity and efficiency. Furthermore, the
application of AI has also supported in decreasing the cost related with carrying out
repeatable activities. The firms are also adopting artificial intelligence for making
improvement in talent management as well as monitoring capability (Davenport and Ronanki,
2018). AI is supporting in bringing novel innovations in all the areas for resolving complex
issues.
Artificial intelligence as a business tool and its effectiveness
The retails firms can utilize virtual assistant programs for offering real time help to
the customers like paying bills and many others. Retail firms can make use of artificial
intelligence for making improvement in the operational efficiency as well as experiences of
the customers. Zendesk popularly recognized as a customer service software which helps in
evaluating, organising as well as collecting information throughout different platforms for
personalizing the experience of the clients. similarly, Time Hero is also famous task
management software which supports in adequate management of time and prioritization of
activities efficiently. In addition to this, there is one more famous artificial intelligence
business tool that is Timely App which assist in automating the timesheet generation and also
tracks the time. Moreover, the shipping status tool is also an important tool for tracking the
shipment status of the firms. Thus, it can be said that AI has supported in allowed the
business tools which can help varied firms in improving their efficiency as well as
performance (Lu, Li and Chen, 2018).
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RELATIONSHIP BETWEEN OLD AND NEW EMERGING THEORIES
ON BUSINESS AND MANAGEMENT STRUCTURES
Scientific management theory
Talking in relation with the scientific management theory, it supports in synthesizing
as well as evaluating the flow of work. The major purpose is to make improvement in the
financial efficiency as well as labour productivity. It is also called as a methodical approach
that suggests different methods for managing diverse management issues. This theory is
being developed by Frederick Winslow Taylor which helps in representing that each of the
activity must be premeditated and inspected accurately for identifying an enhanced manner of
performing the same. secondly, each and every employee should be trained and selected
meticulously for carrying out different activities. Thirdly, managers are required to make
plans and workers must take the accountability for execution of those plans. Finally, both the
workers and the managers must collaborate with each other for making sure effective
production processes (Bernstein, 2017). For the purpose of executing digital technologies, it
is essential on the part of the managers to make a successful plan and mist motivate the
workers to make different alterations in the workplace on the basis of that. There are different
firms who are making use of this theory for finding a path for improving worker’s
performance through systemizing the process and tools of workplace. Digital Taylorism will
help in augmenting the efficiency through standardizing and routinizing the techniques for
completing every activity in a specified job.
Bureaucratic management approach
Rather than emphasizing heavily on making improvement in the production level and
efficiency of the workers, this approach pay attention on supporting the managers to
coordinate varied duties of the firm. This theory eliminates favouritism along with social
privilege in a family-oriented business. according to Max Weber, bureaucracy is one of the
most well-organized manners of managing and setting up a company and it is also essential
for the large firms to attain an enhanced production level. Further, this theory also stated that
specialization of activity also supports in promotion of accomplishment of a particular
activity on stipulated time. The workers are required to be selected on the basis of their skills
and abilities which can be obtained by experience, education and training. Digital
bureaucracy can be referred as a project that allows the firm to carry out bureaucratic
activities which are time consuming amid nations, people and institutions through utilization
of technological network quickly as well as cost effectively. Furthermore, digital technology
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will support in improving communication, collaboration, content management and staff
experience (Hamann, 2017).
Contingency theory
As per the contingency theory, the effectiveness of leadership is relied on the
effectiveness of the group and it majorly relies on two important elements that task
motivation and situations. Task motivation can be measured with the help of least preferred
co-worker scale. As per this theory, workers who have high LPC scores most of time make
efforts to have harmony in their work association. However, employees with low LPC scores
pays attention more towards attaining a particular task. Further, this theory also epitomizes
that the strategy of the management will not work for all firms. the newly emerging
management theory represents those three key things which plays a crucial role in developing
management strategies that is size of the business, leadership and technology. If the firm
desires to install digital technologies in the workplace than contingency factors must be
connected with the empirical challenges of the firm and thus, allowing the managers to offer
essential training to all the workers (Abba, Yahaya and Suleiman, 2018). Therefore,
contingency theory offers varied manners of solving workplace issues and foster effective
decision making.
System theory
The system theory of management supports in exploring novel manners for the
managers and offers them with a novel management approach. This newly developed
management theory represents that the firms are made up of varied sub-sections and all of
these parts need to be function effectively. As per this theory, cooperative and creative staff
members are needed for the organization to succeed. The managers are anticipated to analyse
the events and patterns of the organization for determining an enhanced management strategy
for the firm. Due to which they can work in collaboration with each other on varied kinds of
projects. Moreover, system theory is majorly utilized as the analytical framework for helping
in explaining the way in whcih the firms manage different facets of digital technologies
extending from determination of essential resources to concluding results of the technology
utilized (Schneider, Wickert and Marti, 2017).
CONCLUSION
Thus, from the above evaluation, it can be stated that artificial intelligence can
support in bringing different benefits to the retail industry. The inventory, supply chain and
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other processes powered by AI has supported the clients with real time data about the
availability of the products. Further, the main benefit of Artificial intelligence was found to
be reduction in the human errors and augmentation in the exactness as well as accurateness.
Most of the companies in almost every industry are making use of digital assistant for
communicating with the customers and has essentially decreased the requirement of human
resources. The report has also evaluated different old and new theories on business and
management such as contingency, system and bureaucratic management approach which can
support the firms in augmenting their production level and capability of making effective
decisions.
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REFERENCES
Books and journals
Abba, M., Yahaya, L. and Suleiman, N., 2018. Explored and Critique of Contingency Theory
for Management Accounting Research. Journal of Accounting and Financial
Management. 4(5). pp.40-50.
Bernstein, E.S., 2017. Making Transparency Transparent: The Evolution of Observation in
Management Theory. Academy of Management Annals. 11(1). pp.217-266.
Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N., 2019. Digital business
strategy: toward a next generation of insights. MIS quarterly. pp.471-482.
Cath, C., Wachter, S., Mittelstadt, B., Taddeo, M. and Floridi, L., 2018. Artificial Intelligence
and the 'Good Society': the US, EU, and UK approach. Sci Eng Ethics. 24(2). pp.505-
528.
Davenport, T.H. and Ronanki, R., 2018. Artificial Intelligence for the Real World. Harvard
Business Review. 96(1). 108-116. pp.
Hamann, P.M., 2017. Towards a contingency theory of corporate planning: a systematic
literature review. Management Review Quarterly. 67. pp.227–289.
Jain, A. and Ranjan, S., 2020. Implications of emerging technologies on the future of work.
IIMB Management Review. 32(4). pp.448-454.
Lu, H., Li, Y. and Chen, M., 2018. Brain Intelligence: Go beyond Artificial Intelligence.
Mobile Networks Applications. 23. pp.368–375.
Nadkarni, S. and Prügl, R., 2021. Digital transformation: a review, synthesis, and
opportunities for future research. Management Review Quarterly. 71(2). pp.233-341.
Schneider, A., Wickert, C. and Marti, E., 2017. Reducing Complexity by Creating
Complexity: A Systems Theory Perspective on How Organizations Respond to Their
Environments. Journal of Management Studies. 54(2). pp.182-208.
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