Impacts of AI on E-commerce Industry Assignment 2022

Running head: IMPACTS OF AI ON E-COMMERCE INDUSTRY
IMPACTS OF AI ON E-COMMERCE INDUSTRY: A Case Study of Dan Murphy
Name of the Student:
Name of the University
Author Note

IMPACTS OF AI ON E-COMMERCE INDUSTRY1
Table of Contents
Introduction...................................................................................................... 2
Discussion........................................................................................................ 3
Current Business Operation of Dan Murphy..................................................3
Importance of AI on Dan Murphy..................................................................3
Methods of using AI in Dan Murphy...............................................................4
Literature Review.......................................................................................... 6
Conclusion........................................................................................................ 7
Reference......................................................................................................... 8
Appendices..................................................................................................... 11

IMPACTS OF AI ON E-COMMERCE INDUSTRY2
Introduction
Artificial Intelligence is defined as the simulation of the human intelligence
that is processed the computer systems. The processing method includes self -
correction, reasoning and learning. Some AI applications are machine vision, speech
recognition and expert systems. AI plays an important role in all industries. The
most useful feature of AI is that it can be implemented in any type of business. AI is
becoming the key driving force for every business. It helps the business to achieve
the competitive advantage over other business. AI helps the business to achieve its
business goal. IT helps the business to efficient operate and allow them to provide
quality services to their respective clients. It helps the business to retain and
involve more customers in their business. The most characteristic feature of AI is
that it helps the business to operate their operations quickly. It increases the
productivity of the business especially it hugely impacts the e – commerce industry
where the business provide their services over internet. The transaction process of
e – commerce industry is a critical sector of the business where the AI plays an
important role. This report mainly focuses on the impacts of Artificial Intelligence on
an e – commerce business. The chosen business for this report is Dan Murphy. Dan
Murphy is the Australian liquor chain store governed by the Woolworths Limited.
The business is comprises of total 226 outlets all throughout the country. The most
characteristic feature of this e – commerce business is that it provides liquor at low
price to the common people. Each of its outlet contains over 5000 types of
products. The business provides Lowest Liquor Price Guarantee which implies that
the customer can be ensured that when they are placing an order in the Dan
Murphy, they are getting the respective product at minimum price. The business
deals with any operations such as accepting the orders from the customers,

IMPACTS OF AI ON E-COMMERCE INDUSTRY3
processing of the placed order, transaction for the placed order, exchange of any
product, shipping the product to the doorstep of the clients an many more. All these
operations are assisted by AI which helps the business to operate seamlessly. Thus
AI has many applications in the concerned business.
Discussion
Current Business Operation of Dan Murphy
Dan Murphy is large supermarket of wine operating through online and
providing the products to their client. Currently the business contains 226 outlet
throughout Australia and each of their outlet sells over 5000 products. Woolworth
group is the diverse collection of retail business operating to become a purpose led
business (danmurphys 2019). The main motto of Woolworths is to produce better
opportunities to make tomorrow better. The business operates in a framework
which allow them to operate and develop themselves for the customers, team and
the communities. There are six priorities of the business, they are Convenient and
connected methods for shopping, evolvement of the drink business, unlock the
value of their business, build better opportunities for both the customers and the
stores (Laudon and Traver 2016).
Importance of AI on Dan Murphy
AI comprises of three main components Learning, Natural Language
processing and Data mining. The first section Data mining is very useful in Dan
Murphy. The business deals with huge data every day and thus to operate
seamlessly the business needs to break this data so that each section of the
business deals with small data and operates on the basis of the broken data
(Brynjolfsson and Mcafee 2017). This helps the business to focus on their respective
core business operation. The operating staffs first accept the order and then the
whole details is broken in different parts which are then surpassed to the relevant
section of the business. The passed data are then sent to the sales department of
the business and the sales department further process the order and then the order
is shipped to the door step of the customer. The second area of AI is the NLP
(Russell and Norvig 2016). Natural Language Processing is the method used to