Holmes Institute: Amazon Australia AI Business Analysis Report

This report provides a comprehensive analysis of Amazon Australia's e-commerce operations, focusing on the significant role of Artificial Intelligence (AI) in driving sales, enhancing user experience, and improving business management. It explores the current operational strategies of Amazon Australia, emphasizing its role as a third-party seller and its increasing sales of in-house manufactured goods. The report delves into the importance of AI in various aspects, including tailored product recommendations, virtual assistance, voice command implementation, and preventing counterfeit sales. It also highlights the use of data analytics for campaign management and personalized search, which contribute to a better customer experience and increased sales. The research methodology involves secondary data analysis from peer-reviewed journals, with a literature review examining the impact of AI in e-commerce, including the implementation of automated negotiation protocols, security issues related to data collection and storage, and legal and ethical considerations. The report concludes with recommendations for mitigating potential challenges and maximizing the benefits of AI implementation, offering insights into the evolving landscape of e-business applications and the strategic advantages AI provides.

Running head: AMAZON AUSTRALIA BUSINESS ANALYSIS
AMAZON AUSTRALIA BUSINESS ANALYSIS
Name of the Student
Name of the University
Author note

Table of Contents
Introduction......................................................................................................................... 3
Current operation of the selected E-Commerce store.........................................................3
Reason of importance of Artificial Intelligence in the chosen business...............................4
Research Methodology........................................................................................................ 5
Literature Review................................................................................................................ 5
Conclusion........................................................................................................................... 7
Recommendation................................................................................................................ 7
References.......................................................................................................................... 8

Introduction
The organization that is chosen for the execution of the research is Amazon Australia. Amazon Australia
is one of the biggest E commerce store that is available globally. The acceptance of the E commerce stores have
been getting higher in recent times. The advantages that are provided by the E Commerce store have been
immense and this has been the major reason of higher acceptance rate. Artificial Intelligence has been “the
technology” that has been gaining very high importance and several research and development teams have
developed regarding AI. It is considered that AI is one of the ever evolving technology, which makes the
technology such important in today’s society. Usage of AI in the field of digital business has been increasing in a
very fast rate. Data analysis is one of the field that is getting benefitted due to the usage of the AI in the E
Commerce stores. This research discusses about the background of Amazon Australia. Proper discussion
regarding the functional processing of Amazon Australia is also stated in the report. The importance of AI in the
business management of Amazon Australia is also very well described in the report. Discussion regarding the
research methodology is also stated in this report. Hence wise a precise literature review of 5 peer reviewed
journals are provided in order to understand the alignment of AI implementation and business execution of E
Commerce store such as Amazon Australia. Proper recommendation to mitigate the issues that might be faced
are also well stated in this report.
Current operation of the selected E-Commerce store
Amazon.com.au is basically concerned with selling of goods that are stored in their warehouses. The E
Commerce store is generally acts like a third party that performs sales for the products on behalf of the
organizations and hence wise act as a middle man in the deal. It is also seen that in recent time Amazon
Australia has been selling goods that are manufactured by Amazon themselves (Bhargava et al, 2016). It is
seen that both the sellers and the retailers utilize the platform of Amazon Australia for commencing of the
business. The main benefit that is provided by Amazon Australia is that it helps the retailers who does not have
enough space to conduct their business. The cost that is required to perform their business by having local
shops and paying their rents can be eliminated. This elimination helps the retailer to invest more in business
management and hence wise increasing the acceptance of Amazon Australia. Amazon Australia uses the
technology of AI for understanding the needs and demands of the clients. This ensures that proper
understanding of the demands can be made and hence wise prediction can be made. This proper prediction
also helps in proper decision making regarding the business making. This is one of the major reason that
Amazon Australia have been succeeding in proper business analysis and has been an important factor for the
success of amazon Australia.

Reason of importance of Artificial Intelligence in the chosen business
AI has been revolutionizing the functioning process of Amazon Australia. There are few aspects that are
to be considered for understanding the importance of the AI in Amazon. The factors are namely performing of
tailored recommendation of products that can be of interest of the users. Providing virtual assistance is also
another feature that is achieved due to the implementation of AI in Amazon Australia. Implementation voice
commands is also one of the major aspect that acts as an advantage in the business processing. Faster
responding to the queries and satisfying the needs of the clients with the help of AI has also instilling
importance of AI in business management of Amazon Australia. Usage of AI in preventing sale of Counterfeit
has also been acting important in business processing of Amazon Australia (Turban et al, 2017). Performing
campaign management with proper data analytics have also been acting important.
Personalized search is the most important aspect that is considered in case of performing business
management in Amazon Australia. This factor helps Amazon Australia to perform a proper understanding the
demands of the clients in individual level. This processing of business in individual level will ensure that the
clients receive tailored service from the host (Guy and Radinsky 2017). This gaining of tailored service helps in
gaining a better experience for the clients. This receiving proper and better experience has been benefitting the
business image of Amazon Australia. Another aspect that is to be considered is that with the help of AI, proper
analyzing of human behavior of Australia products can be launched and hence wise proper sales can be
provided. This will again increase the acceptance of the site. This process has been continuing and has been
one of the major reason of success of Amazon Australia. After the implementation of AI in Amazon Australia a
total of 29% sales increase have been noticed (Meltzer 2018). Data are collected from the data that are
generated from the purchased products as well as the data that are collected from similar buyers and hence
wise helps in anticipating the demands of the clients.
Virtual assistance has been another aspect that increases the importance of AI in the business
processing of Amazon Australia. It is seen that the users who log in the website are often confused with the
products that they want to purchase. In case of retail shopping they get assistance of the retail manager (Jasin
and Sinha 2015). Similarly, Amazon Australia uses virtual assistance which eases the shopping process of
clients. In this while fetching personal data is also performed which again helps Amazon Australia in providing
tailored and personalized solution to the clients.
Responding queries have also been a major concern of Amazon Australia. It is seen that there are
queries throughout the day and 24*7 support is required for the functional processing of business
management. With the help of AI the main advantage that is considered includes the fact that an instant reply
can be provided to the clients and their queries can be resolved in a faster rate. Usage of chat bots for attaining

call has been a major advantage that is provided by AI (Laudon and Traver 2016). The aspect that chat bots
have high accuracy in delivering the calls to the correct department. In this case the chat bots start the chat
and analyze the requirement of the client and hence transfer the call tri the required department. Sending
formality emails as per templates provided to the chat bots can be performed faster than the traditional
manner.
The fact that Amazon Australia is a third party business system the main aspect that is considered is
that the products that they are selling needs to be tested by them also. This section is important in maintaining
the goodwill of the organization. In case the counterfeits and replicas are sold in place of the genuine product
by the seller, Amazon Australia will be facing the direct threat of losing good will (Kiu and Lee 2017). In case of
receiving counterfeit products, local residents will lose their trust on Amazon Australia and hence business
processing will be getting affected in a negative manner. This will ensure that the audience base will be
decreasing and hence wise the revenue collection will also be getting affected in a negative manner.
Data analytics is the section that gets positively affected after the introduction of AI in the business
processing. AI helps in performing in depth data analytics (Kremez et al, 2019). With proper data analysis,
proper estimation of the data generated can be performed. Hence wise the changes that are to be made can
be well understood and incorporating innovation gets easier.
Research Methodology
The research methodology that is used in this case secondary data analysis. In this data is collected
from peer reviewed journals. Proper understanding of the concept can be made. This will ensure that the
importance of AI in business processing is the main concern. This understanding of the concept is performed
with the help of the data generated by journals. 5 peer reviewed journals are included in this section. Data
regarding the privacy related issues that are faced due to the usage of AI in business is also studied. Proper
study regarding the legal, social and ethical issues are also made. Qualitative data analysis is performed in
order to gain subjective knowledge regarding the ICT implementation in business of Amazon Australia.
Literature Review
As per Cao, M., Luo, Luo and Dai (2015), there is an important role that is to be played by AI in the
performing automated negotiation with the help of dynamic trading e commerce system. Proper protocol
implementation is to be performed for proper assessment of multi strategy selection. This protocol acts
important in performing the automated negotiation and hence wise create a proper human computer
interaction. Amazon Australia will be getting highly benefitted in case the protocol is implemented in a proper
manner. The protocol is diversified in 2 sections. The 1st section of the protocol is behavior dependent and is
considered to be functional as per the analysis of the behavior that is provided from the clients end. The 2 nd

section of the protocol will be time dependent. This ensures that in this case, the main aspect that is
considered is that ignoring of the reaction of the opponents can be made. This ensures the fact that proper
assessment of the predetermined time dependent sequence can be made (Pearce and Pinto 2018). Usage of
predetermined time dependent sequence can be made in a proper manner. Hence wise usage of this
technology by Amazon Australia will be providing them an edge over their competitors.
Again according to Salehi, Mirzaei, Aghaei and Abyari (2012), there are a few security issues that are
present in the business processing due to the implementation of AI and ICT. The major security issue that is
present is that the data that is collected during the payment process is collected and stored in the data base. In
case the data that are stored in the database of Amazon Australia is breached the personal information of the
clients will get revealed, leading to the fact that a huge loss can be incurred by the company as well as their
genuine clients. This will again affect the good will of the organization (Pearce and Pinto 2019). It can be stated
that in case the imposters gain access to the banking details of the genuine clients as those are provided for on
line ordering purpose, they can act on behalf of the genuine clients and harm the users. Another aspect that is
considered is that each and every activity of the clients who have visited the website is monitored. This
monitoring is performed for providing them proper tailored service but this monitoring is performed without
the permission of the clients themselves.
Again according to O’Connell (2012), there are legal issues in the processing of AI and ICT in the
business processing that will be affecting the business management of Amazon Australia. Presence of excess
focus on the informational self determination has been acting as a legal issue. The focus has shifted from data
security to data self-determination. It is seen that there are few acknowledgements that are to be made before
entering few websites. In that acknowledgements there are few rules and regulations that are to be
acknowledged, often those acknowledgement is mot made with consent and rather it is just acknowledged
without even reading. This acts as a legal trap that ensures that the website will be gaining access to the
personal data. Amazon Australia must be concerned with these legal issues that directly affect the clients and
indirectly affect the good will of the organization. It is also an important to upgrade the legal framework to the
latest version. Hence there is a fallacy in the law related to data protection (Szolnoki, Thach and Kolb 2016).
The fallacy is due to the fact is that the law regarding data protection is more inclined towards to the self
determination of data. Another legal issue that will be faced includes copyright issues. In this case intellectual
properties are considered. In Amazon Australia paintings and audio drives are also sold. There are no proper
copyright related laws present in the case of intellectual property transaction in e commerce. Another legal
issue that it might be facing is that there are not proper laws regarding the accessing of data by the higher
authorities of the online retail stores. The higher authority of Amazon Australia can view the data of each and

every personnel visiting the website without and prior acknowledgement of the users. This acts as illegal but
there are no such law that prevents the stops the higher authority to view the data.
Again as per (Niranjanamurthy, Kavyashree, Jagannath and Chahar (2013), there are several social
issues that are present due to presence of the AI and ICT in E-Commerce. Due to the presence of AI, the main
aspect that is considered is that there are abolition of competition from the traditional perspective. As the data
fetched by the system acts as a decision processing system. This ensures that proper assessment of the
collected data will be helping in making decisions in a better manner with higher accuracy than the traditional
shops that do not use AI or ICT in their business management. Hence it can be stated that a huge amount of
data is stored in the data base of the E-Commerce website, like Amazon Australia. In case data breaching
occurs and the entire data gets leaked, the entire society gets affected in a negative manner ((Ghandour 2015).
The entire society will be facing security related issues and Amazon Australia will be responsible for the same.
Hence this will act as the reason behind this issue.
Again according to Sharma and Lijuan (2014), there is a major ethical issue that is present in the
functioning process of E commerce due to the presence of AI and ICT. This issue is that a constant monitoring is
made on the clients who visit the website without any prior notice provided to them and without their
acknowledgement. Although the data are collected for providing them higher satisfaction during the shopping
process but the entire thing is unethical (Tian et al, 2018). Monitoring a personnel without their concern for
gaining personal data in order to enhance their searching process and increasing their own business is also
considered as an issue. Amazon Australia also probes this ethical issue on their business processing system.
Conclusion
From the above discussion, it can be stated that Amazon Australia have been getting highly benefitted
with the implementation of the AI and ICT in their business processing. This ensures that proper assessment of
data of the existing clients can be performed in a proper manner and this helps in bettering of the business
processing. With proper data collection and analysis proper decision making can be made in an accurate
manner. Despite the benefits that are present there are several issues present in the system. Social issues,
Legal issues, Ethical issues and Security issues are present and this affects the business processing of Amazon
Australia and hence these issues are needed to be mitigated.
Recommendation
 Implement firewall for securing the data that will be collected.
 Implementation of the technique of deletion of the data after usage will also act helpful.
 Collaboration with the traditional shops will be affecting the society in a positive manner.

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