The Role of Artificial Intelligence in Transforming Retail Commerce

Abstract

Artificial intelligence (AI) has emerged as a key driver of change in retail business and consumer shopping dynamics in retail business. This review article aims to discuss the versatile use of AI in the retail industry and its key applications including hyper-personalization, AI supply chain management, dynamic pricing strategy, and the use of augmented reality (AR) and virtual reality (VR). Big giants such as Amazon and Walmart have shown how AI can bring a massive change in terms of effectiveness in the retail sector and redefine the bar for other industries. The use of AI in conjunction with other new technologies like IoT and blockchain is also discussed and how these technologies work together to improve efficiency and increase the level of transparency in the supply chain. Nevertheless, the introduction of AI in retail comes with several risks that include data privacy, high costs of implementation, and ethical dilemmas such as algorithmic bias and lack of transparency. It also covers the future of AI in retail with a focus on the positive impacts such as sustainability and ethical issue solutions in response to the changing regulations. This review also comes to the same conclusion that AI is a necessity for the future of the retail store business as it opens doors for opportunities and threats for the future advancement of the retail business.