Investigating AI's Impact on Retail Firm Performance: Marks & Spencer

This research project investigates the impact of artificial intelligence (AI) on the performance of firms within the retail industry, with a specific focus on Marks & Spencer. The project begins with an introduction outlining the background, focus, aims, objectives, and structure of the dissertation, emphasizing the significance of AI in modern retail and its potential to enhance efficiency and customer experience. The literature review examines existing research on AI's influence on retail, including personalized shopping experiences, the transformation of e-commerce, and the advantages of AI technologies like virtual reality and video analytics. The research methodology chapter details the interpretivism research philosophy employed, along with the research design. The project aims to analyze the concept of AI, evaluate its impact on retail performance, identify its advantages, and recommend ways AI has changed business operations. The project concludes with an analysis of data, findings, conclusions, and recommendations based on the research conducted.

Research project
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CHAPTER- 1 INTRODUCTION
1.1 Background
Artificial intelligence has taken the retail world by storm. For shopper who like to have
personal shopping, artificial intelligence helps them in providing shopping process and
personalised experience that retain customers for longer period of time (Copeland, 2015). The
purpose of AI is not to replace human beings but support them in increasing tech-based jobs in
all over the world. In order to create more efficient systems modern business required that
artificial intelligence to be integrated into the processes. The present research is based on Marks
and Spencer which operates its business in retail sector. The firm also sells its product through
online websites in different countries. It sales wide range of products which includes, clothing,
food etc. Artificial intelligence lead to provide timely intelligence to the E-commerce business
hic help make all the complex task easier.
1.2 Focuses and purpose
This research study will be accompanied with the key determination of discovering the
influence of artificial intelligence on performance of the firm in the retail industry. The purpose
of this examination is to analyse the gap which is left by the earlier researcher on the selected
topic. There are many researches have been conducted on artificial intelligence impact on
performance. However, the relationship between two is revealed by most of the authors in their
research. Artificial intelligence has taken place of human and they are helping business in
accomplishing success. In this context, the purpose of the present research is to develop
understanding related to the different aspects of the artificial intelligence and the way it impacts
performance (Wu and Olson, 2014).
1.3 Aims and objectives
Aims - “To investigate the impact of artificial intelligence on performance of the firm in the
retail industry - A study of Marks and Spencer”
Objective
 To study the concept of artificial intelligence
 To evaluate the impact of artificial intelligence on performance of the firm in the retail
industry
 To analyse the advantages of using artificial intelligence in the retail sector
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 To recommend the ways in which artificial intelligence have changed the operation of
business in the retail sector
Research questions
 What is the concept of artificial intelligence?
 What are the impact of artificial intelligence on performance of the firm in the retail
industry?
 What are the advantages of using artificial intelligence in the retail sector?
 What are the ways in which artificial intelligence have changed the operation of business
in the retail sector?
1.4 Overview of dissertation
In the present dissertation there many chapters which are required for attaining the aims
and objectives in an effective manner. Here below are the following chapters-
Chapter- 1 Introduction: The first section of dissertation is of introduction which provide
overview of selected topic. This section shows the framework with respect to the phenomenon
used in the research.
Chapter- 2 Literature review: Literature review is considered as most important part of the
research which provide views and opinion of different authors on the selected topic. This section
makes evaluation of the knowledge and information which is exist with the prevailing literature
piece in form of secondary sources.
Chapter- 3 Research methodology: Research methodology section will cover wide range of tools
and techniques which will help in carrying out the research in a right direction. This section is
comprised of the tools which is employed by the researcher at the time of directing a research.
Chapter -4 Analysis of data and findings: In this chapter all the collected information will be
analysed in thematic form.
Chapter- 5 conclusion and recommendation: At last conclusion and recommendation will be
provided on the basis of results.
1.5 Potential Significance
The present research will provide depth knowledge related to the impact of artificial
intelligence. This research will be essential in order to develop understanding related to the
artificial intelligence and the way it can impact performance of retail companies. It assist in
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finding out the area that can be improved and become effective for the business. Here below are
the potential significance of the present research:
 Retail company will get benefits from the present research. They can able to employ
artificial intelligence in their way of working through considering its impact on the
performance.
 It will provide assistance to the analyst in order to prepare an overview of the impact on
artificial intelligence on performance of the firm.
 The present research will be helpful for the academician who are preparing for Ph.D in
developing a deep understanding related to the artificial intelligence.
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CHAPTER- 2 LITERATURE REVIEW
2.1 Introduction
The area of writing audit is viewed as most noteworthy part that is joined with the
proposition. The significant point next to leading the specific part is related with improvement of
appropriate and in addition dependable hypothetical base on particular subject. Because of this
writing survey is viewed as particular section in the record. In this the conclusion from the
common research inside the specific area is explored and evaluated for achieving proper
discoveries after the entire examination is being done. Notwithstanding this conclusions of the
different creators in connection to introduce examination is illustrated. In addition, the section
incorporates more prominent information run which is joined with a few parts of chosen subject
by methods for auxiliary sources. In the present proposal part of writing survey is viewed as
noteworthy in wording that it helps with making assessment of the idea for the execution of the
exploration in a powerful way.
The influence of artificial intelligence on presentation of the firm in the retail industry
According to the view of Korinek and Stiglitz, (2018), the complete retail industry has
being changes because of Artificial intelligence within the firm. It plays significant role in
respect to improve the performance of the firm. Customers received personalised experience
which is provided to them through the implementation of artificial intelligence. According to
Konishi, (2018), state that, retail industry is long being transformed as because of the use of AI
in the business. Along with this performance of the firm also improved. Customers are getting
online shopping experience with the help of AI technology in the business. With the use of AI
technology company can easily keep record of all its past activities. For instance, company can
gain information from its purchase history, clicks etc. This will help company to know get
knowledge more about their potential customers and issues faced by them while making
purchase. Through this way company can easily make improvement in their performance and
carry out all the business activities in an effective manner. Lu, Li and Serikawa, (2017), stated
that through keeping in mind views ad response of customers the company can provide them
different types of offers which can help in increase sales and profit. For example, on social
networking sites such as twitter, Facebook etc. if an invidiual like a post of company products or
commented positively on picture. Through this signals can be taken through the help of
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algorithms and in the personalised recommendation can be easily seen to the individual related to
the product which is like by them. Hence it is a way through which AI can keep record of like
and preference of the customers and provide them suggestion for making purchase
(Brynjolfsson, Mcafee and Org, 2017). The concept of artificial intelligence has completely
transformed the retail industrial sector in today’s global era where the customers are being served
with different technical aspects encompassing some effective means of progression. Artificial
intelligence being an effective technology that facilitates the computers to undertake self-
directed decisions. It is mostly used by the retail organisations to assess their customer data by
together adopting certain effective ways to interact with that to the customers in order to
determine their shopping preferences. The concept of artificial intelligence is mainly adopted by
the retailers to drive their sales by anticipating customer’s demand by together understanding
their behaviour towards purchase. The notion of artificial intelligence is also apparent to
determine the ways in which shoppers will tend to perceive the items displayed to them. Also,
this will assist in the recreation of interaction among the shoppers and the store assistants with a
special context of brick and mortar stores.
This is with an utmost concern of guiding as well as advising the shoppers in a well
competent manner (Spiro, Bruce and Brewer, 2017). Retailers have been seen to make plentiful
investments in an apt use of AI in the business where the retail industry is the 3rd largest user of
this particular application. This is with a foremost aim of performing in a competing manner and
combat an intense state of rivalry in the retail sector. It is along with a foremost concern of
getting benefitted from a suitable use of artificial intelligence that has the capability of
provisioning a personalised experience of shopping to the customers by together scaling up their
data (Cohen and Feigenbaum, 2014). This is not only evident to keep the consumers satisfied
about the services they are intending to get from the retailers but is also providing a distinct set
of experience to both the service users as well as the providers.
The advantages of using artificial intelligence in the retail sector
According to the view of Skilton and Hovsepian, (2017) there are many advantages of using AI
technology by business. It is essential for the firm to understand the way they can use them
increase sales and profit and improve their performance. Spiro and Brewer, (2017) argued that
with the help of virtual reality the customers can easily visit to different stores and views al the
products and find out latest collection from any place through just one click. It is one of the
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effective way through which company can easily increase online customer base. Along with this
it also leads to save time and money of customer as moving from one shop to another to make
purchase. Yao and Boër, (2017), state that with the use of AIT technology such as video analytic
security alert can be alerted on camera in respect to gain knowledge what customers are doing at
their shop.
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CHAPTER 3: RESEARCH METHODOLOGY
Introduction
Research methodology is consisting of various sets of methods and techniques that can
help them in conducting out the research in an effective manner. In this chapter research has
provided various tools and techniques that is considered for the present research and valid
justification is provided.
Research methods
Research philosophy
Research philosophy is known as the conviction identified with the method for social
affair and investigating the information. There are four kind of research theory that are
interpretivism, authenticity, positivism and realism (Dirican, 2015.). Positive focus on
conducting the study in which the objectives are measures. Along with this all the false facts
which are included are removed with the help of this method. It is consisting as structural way
which enable to combine the logical aspect and focus on experimental observation. On the other
side, in interpretivism philosophy the focus is on subjective part of the study. In this different
theories and model are used which are related to the selected topic (De Masellis and
Stuckenschmidt, 2018). For the present research, interpretivism research philosophy is
considered by the investigator. With the use of this scholar can easily focus on aims and
objectives which are set by the scholar. It is one of the effective way which can be consider by
the scholar for determining the importance of artificial intelligence.
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Figure 1Research onion
(Source: Research methodology 2017)
Research design
It is considered as an effective tools and techniques that help researcher to include
different components of the examination in intelligent way. Alongside this, it empowers the
researcher to address the examination issue in a viable way. There are three kinds of research
outline that are descriptive, exploratory and explanatory (Cohen and Feigenbaum, 2014).
Exploratory is used to uncover the fact that are involved in the study. For the present research
descriptive research design is applied by the scholar in respect to describe the population which
is covered in the study. Reason for choosing this technique in which description can be given for
those subjects which help in attaining the aims of the research. Along with this, such type of
research design is effective in defining the situation in an effective manner from different sources
(Kerr, Eckert and Wandwabwa, 2016)
Research approach
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It is considered as type of research that enable researcher to determine the way through
which the research can present the information both specific as well as general. Approaches
which are incorporated into this are exceedingly compelling in regard to do inquire about in a
powerful way (Wright, Wahoush. and Jack, 2016). It is classified into 2 types that are inductive
and deductive. In inductive approach, firstly specific information is gathered by the scholar then
move toward the specific one. All the presented information is generalised first then emphasise
on cove rig the specific topic. On the opposite side in deductive approach, the invetigator willing
to show the data from specific to general. Along with this, existing theories which is related to
the research subject. Through, considering this researcher can focus on the specific aspect of the
research. However, both types of research approach are effective enough. In accordance to the
selected topic for the present research, the scholar has selected inductive approach (Bailly and
Comino, 2017). It is considered as effective in order to gain depth information related to the
selected topic. reason for selecting this approach is that all the information related to the selected
topic is analysed and specific information are covered.
Data collection: Data collection is known as the method through which different types of
information is gathered for reaching the valid outcome. Two sources from where information can
be gathered are known as primary and secondary. Primary information is can be stated as new
information which is not yet collected by any author or publisher. It is considered as highly
reliable information that help gaining valid outcome. Different sources to collect this information
is survey, questionnaire, interview etc. On the other side, secondary information is that which is
not new and already published by the scholar in their books and journals. It is known as second
hand information that help in making research stronger. To collect such type of information
research can use different books, journal articles etc. For the present research both primary and
secondary method is used by the scholar. In primary method, information is gathered through
survey, in this question is asked from 30 managers of Marks and Spencer. On the other side,
secondary information is collected through books, journals and company websites. Reason for
choosing the primary method is that all the specific information related to the selected topic that
is impact of artificial intelligence on company productivity. Information can be gathered on the
basis of which proper outcome can be generated (Mebius, Kennedy and Howick, 2016).
Sampling:
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For the scholar it is not easy to carry out the research from large number of population.
Therefore, sampling method need to be consider so that survey can be carried out in an effective
manner (Winit‐Watjana, 2016). Two methods of sampling are random and non-random sampling
method. For the present research, the investigator has selected random sampling method in
which all the respondents can be get equal chances to be involved in survey. Here, 30 managers
of Marks and Spencer is selected who can help in providing depth knowledge related to the use
of artificial intelligence. in their company. Reason for selecting manager is that they can help in
providing information how effective artificial intelligence is used in their company.
Research strategy:
There are two type of research strategy that can be consider by the scholar at the time of
carrying out research that are qualitative and quantitative. For the present research, qualitative
research strategy can be considered as an effective strategy which help carrying out depth
analysis.
Data analysis
In the wake of social affair data from essential sources, it is imperative to legitimately
assess it, so scholar can without much of a stretch concoct appropriate conclusion (Creswell and
Poth, 2017). Two strategies for examination are subjective and quantitative. In subjective
gathered data is assessed with the assistance of non-numeric frame. In this, subjects are set up for
investigation. On the opposite side, quantitative investigation., scholar assess all the data with the
assistance of factual apparatuses, for example, expressive test, chi square test and so on. For the
present research, the researcher is utilizing subjective procedure. In these different topics is set
up based on comes about and translated is finished. Alongside this, diverse graphs and table is
readied that assistance in supporting the discoveries. It is considered as compelling strategy
through which all the data is assessed and give substantial result (Edson, Henning and Sankaran,
2016).
Sampling:
For the scholar it is not easy to carry out the research from large number of population.
Therefore, sampling method need to be consider so that survey can be carried out in an effective
manner (Tight, 2016). Two methods of sampling are random and non-random sampling method.
For the present research, the investigator has selected random sampling method in which all the
respondents can be get equal chances to be involved in survey. Here, 30 managers of Marks and
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