Importance of Artificial Intelligence in E-Business: A Case Study of Amazon Australia

Running head: E-BUSINESS
Holmes Assignment Cover Page
Amazon Australia
Name of Student
Name of University
Author Note

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E-BUSINESS
Table of Contents
Introduction...................................................................................................... 2
1. Current Operation of Amazon Australia........................................................2
2. Need of Artificial Intelligence for Business Survival.....................................2
2.1. Artificial Intelligence and its importance...................................................3
2.2. Artificial Intelligence in Amazon Australia.................................................5
Conclusion........................................................................................................ 7
Recommendations........................................................................................... 7
References....................................................................................................... 8

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E-BUSINESS
Introduction
E-business is mainly referred to a company that processes most its
transaction through the internet. The E-business is linked with the use of web and
internet, intranets and extranets to conduct a particular business. Thus it can be
said that e-business is quite similar to that of ecommerce. Artificial intelligence is
discussed as a theory and development of the computer system which is capable of
performing the tasks that generally requires human intelligence in an effective
manner (Ng 2016). The integration of artificial intelligence in e business can
therefore provide a satisfactory result. Artificial Intelligence is an important
component of e business as it makes the machines work like humans (Medium
2019). The report considers discussing an e business organization Amazon Australia
and analyze the importance of the use of artificial intelligence in the organization.
The current operation of the chosen organization is discussed with an aim of
understanding the need of incorporation of artificial intelligence on the project. In
this context, the importance of incorporation of artificial intelligence in any business
organization is discussed. Based on the findings of the report, certain
recommendations are provided in regards to improving the operations of e
commerce store by making use of artificial intelligence. The following paragraphs
discusses the current operations of Amazon Australia, the need of artificial
intelligence for business survival and benefits gained by Amazon Australia by
making use of artificial intelligence.
1. Current Operation of Amazon Australia
Amazon had started as an US based online retailer that has started its
operation in the year 1994 with an aim of selling books online. In a few years,
Amazon had expanded its presence in Australia as well. Amazon had been able to
dominate the ecommerce market with its effective strategies and innovative
processes for providing services to the clients (Pan 2016.). The use of modern
technology has helped Amazon to create a huge customer base within a few years
of its operation.
The AI based virtual assistance helps Amazon in guiding their customers
towards the products they want to purchase. Amazon offers product like
Alexa that
is intelligently designed to think like human, a product based on AI. Amazon is

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E-BUSINESS
known to be one of the leading ecommerce brands in the world and Amazon
Australia forms a larger part of it (Ballard and Naik 2017.). Amazon Australia serves
hundred thousands of customers and provide a huge platform to the sellers as well.
It is predicted that the market value of Amazon Australia would be $35.2 billion by
the year 2021. The data shows that almost 6% of the Australians shop regularly
from Amazon that indicates quite a huge business profit.
2. Need of Artificial Intelligence for Business Survival
This section of the report aims in discussing the need of artificial intelligence
for survival of a business. The section is further subdivided into two parts. The first
part discusses the importance of artificial intelligence in a business while the
second section discusses the importance and the benefits of artificial intelligence in
Amazon Australia.
Artificial intelligence is found to be widely used in various applications that
include automation, data analytics and language processing (Gasser and Huhns
2014). The use of artificial intelligence (AI) is known to streamline the various
business operations to improve the efficiency of the business. AI is used in business
with an aim of solving various problems and is also known for increasing the sales in
a business, detection of fraud that is associated with a business and is further used
for improving the customers’ experience (Vanneschi
et al. 2018). Furthermore, it is
observed that the retail businesses maps the behavior of the consumer by making
use of artificial intelligence. AI is rapidly becoming one of the most commonly used
competitive tool that help in deep learning. It is seen by the business leaders as an
effective tool for improving the customers’ experience and customers’ satisfaction.
The use of AI helps in improving the customer service and further helps in providing
the needed virtual assistance (González Briones, Chamoso and Barriuso 2016). It is
observed that certain specific AI software is even capable of detecting the security
intrusions that can occur in an organization. There are certain significant
importance and benefits of artificial intelligence. The following sections identify the
importance of artificial intelligence along with the need of artificial intelligence
Amazon Australia.
2.1. Artificial Intelligence and its importance