Impact of Artificial Intelligence on Retail Sector: A Study of ASDA

Business Professional
part 2
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Background..................................................................................................................................3
Aim and objective........................................................................................................................3
Rationale......................................................................................................................................3
Chapter overview.........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................7
RESULTS AND DISCUSSION......................................................................................................8
CONCLUSION AND RECOMMENDATION............................................................................17
RECOMMENDATION.................................................................................................................18
REFLECTION...............................................................................................................................19
REFERENCES..............................................................................................................................21
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Topic: “To identifies the impact of artificial intelligence on retail sector. A study is of ASDA”.
INTRODUCTION
Background
In the modern and advance world, the use of technology is very important as there are
many different types of technology which are helpful for the business in managing and
increasing its efficiency (Popenici and Kerr, 2017). The current report is based over artificial
intelligence which is defined as the simulation of the intelligence of human within the machines
and the machines are programmed to think like the humans. The current report is based over the
company ASDA which is working in the field of retail industry and deals in a variety of the
general merchandising. The current report will outline the impact and challenges of the use of
artificial intelligence within the company.
Aim and objective
Aim
To analyse the impact of the artificial intelligence over the retail sector. A study on ASDA.
Objective
 To understand the concept of artificial intelligence
 To determine the impact of Artificial intelligence on ADSA company
 To examine challenges which ASDA face while implementing and using Artificial
Intelligence in workplace.
Research question
 What do you mean by the concept of Artificial intelligence?
Rationale
In this advance world there are many different types of changes taking place in the
technological sector and if the company will not adapt to these changes then this will affect the
working of the company. thus, the major reason for selecting this as the topic is to increase the
awareness of the use of artificial in business. another major reason for this is the academic and
personal interest of the researcher themselves.
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Chapter overview
Chapter 1- Introduction
This chapter will outline the overview of the topic and the reason for selecting the topic.
Chapter 2- Literature review
This chapter will analyse the different types of sources which the researcher will use in order
critically analyse the topic that is use of artificial intelligence.
Chapter 3- Research methodology
This chapter will give an overview of the different types of methods being selected for the
completion of the research including the type of research, approach and other related things.
Chapter 4- Result and discussion
Under this chapter the analysis of the collected data and the discussion relating to the result will
be there. This will integrate the primary finding with the secondary sources evaluated.
Chapter 5- Conclusion and recommendation
This chapter will deal with the concluding of the finding that is what were the main highlight
which were evaluated in the finding and discussion. Along with this some of the
recommendation will be done for improving the use of the artificial intelligence within the
company.
LITERATURE REVIEW
Theme 1: Concept of artificial intelligence
As noted by Webster and Ivanov (2020), computer controlled robot that can think, learn
and act like human thus delivered quick and better services to customers. Artificial intelligence is
machine that can work itself without requirements of coding or direction. With development in
technology and changes in external environment the concept of artificial intelligence has come
into enforcement so that several operation of organisation can be completed in best possible
manner. The authors Webster and Ivanov has further stated that the term artificial intelligence is
associated to all machines that have traits like human mind i.e, learn and think like human.
Therefore one the characteristics of artificial intelligence is that it has ability to take several
actions and rationalize that can contributed in achievement of specific goals. It has also ability to
reason, learn from past experienced and discover meaning that helps in completing numerous
difficult and complex task in limited time frame and efforts. In another words, it is simulation of
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human intelligence in machine with having wide use in different industry such as Finance, retail,
healthcare and many more. Artificial intelligence can easily complete more complex process by
using human intelligence therefore it has replaced human by solving some complicated task in
most better manner. The author also illustrate that concept of artificial intelligence in retail
industry has been applied in different way across products and services cycle. Like starting from
assembling of resources to post sales of products and services to end customers that contributed
in making people happier and satisfied. The concept of AI has being integrated in retail industry
such as Sales and CRM application, Logistic and delivery, Manufacturing and customers
recommendations. So, as per point of view of author Artificial intelligence is a technology that
has helped in making work more easier and faster thus helps in achievements of organisational
objectives.
Theme 2: Impact of Artificial intelligence on organisation
As illustrated by Horowitz (2018), in recent scenario, Artificial intelligence is the most
important topic in business as it helps in enhancing overall brand image and organisational
growth. Artificial Intelligence has both positive impact on growth and success of business.
Various positive impact of using Artificial intelligence by organisation are enhanced labour
productivity, improved quality and faster delivery of services to end customers. The author
explained that AI contributed in improving efficiencies of workplace by solving complex process
that are previous performed by human by investing more of their time and efforts. Thus it
contributed in reducing total number of employee or labour required to complete task and
delivered services as per expectancy of customers. AI has helped company operating in retail
industry in understanding existing needs and wants of key individuals on basis of analysis of data
related to social behaviour, purchasing pattern and demographical data. AI has also impacted on
labour productivity as it have increased overall production or manufacturing of products and
service by making task more easier. Company are able to delivery quick and more personalised
services to customers due to use of AI while completing different task and activities thereby lead
in growth and expansion of firm. So, as per view point of author AI intelligence has contributed
in transforming whole retail industry by providing more business opportunities and revenue
generating sources.
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While another author Shabbir and Anwer (2018), illustrated that there are negative
impacts of using artificial intelligence by firm performing its function in retail industry. The
biggest negative impact of AI is that it will make employees lazy or they will not be motivated to
make best use of their capabilities in order to delivered qualitative services to customers. Thus
human will get addicted to AI that will cause problem for future generation. At the same time it
cause high unemployment rate within economy as several task are completed by machine itself
therefore there in no needs of human interaction. Another negative impact is that machine can
able to complete any those task that are programmed or designed thereby anything out of the
program will lead to irrelevant output. Thus services cannot be provided as per expectancy of
customers to some extend that will lead in poor performance and impact on overall brand image
of firm.
Theme 3: Challenges in implementation and using Artificial Intelligence in workplace
According to the view of Kaplan and Haenlein (2020), while implementing and using AI
organisation are facing several challenged like computing power, higher cost, limited knowledge
etc therefore in order to make best use of the technology all barrier need to be removed. AI
required supercomputer computing power at the same time they are not able at cheaper price so it
create challenge or issue for organisation. Another challenged is trust deficit as AI have
unknown nature as it generally depend upon learning model. The main challenges or issue in
using and implementing AI is that people have limited knowledge regarding the way it can be
used to perform several task in the organisation. There are only few individuals that have
sufficient skills and capabilities to use AI in order to delivered qualitative services to customers.
Bias is another problem or challenges of using AI as the technology is based on large amount of
data which are biased as there are related specific group of individuals only that have common
interest. There are several legal issue associated with using and implementation of artificial
intelligence within organisation as AI collect sensitive information which is against the law. So,
as per author in order to make optimum utilisation of available AI in order to retained maximum
number of customers within organisation companies need to overcome all the challenges.
Another authors Obschonka and Audretsch (2019), also support that there are more
challenged related to AI in context of collecting and utilising relevant data that is required by
enterprise in order to formulate strategies to influence maximum individuals within organisation.
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