The report brief about ITECH 1100 Understanding the Digital Revolution-The Potential Impact of Artificial Intelligence

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ITECH 1100 Understanding the Digital Revolution


Retailers are using Artificial Intelligence as a part of their business operation for more than 4 years now. 87% of the retailers have been using this technology. It not only forms their decision-making process but also for automation technology functioning activities. It is not only associated with the data analytics but also with the computerized decision-making operations (Kallweit et al, 2014). It is necessary for the transactional business activities. The integrated business decision-making procedure involves the use of financial data, news reports, fashion trends, weather information, customer histories, individual sales and the cost of production.

Importance of Artificial Intelligence in the Retail Sector

All the data historical or current can be utilized to generate functional commercial insights and relevant decision thus decreasing the market time for innovative merchandise and facilities. This assists them to enhance the success rates for taking new initiatives in the business process. Informing an automated decision making with the help of artificial intelligence can support the retailers to establish how much quantity should be ordered and when to place the order (Karray and Amin, 2015). It also helps to determine when the categories of product that should be sold on the site are or in the store, upselling and cross-selling opportunities are offered to customers depending upon the current and previous purchases baskets contents. All these initiatives can be taken at a faster pace.

The procedure involved in gardening the consumer feedback, selling, distributing, making, procurement and planning procedure might take eighteen months in the retail sector to execute. AI has the ability to expedite the entire process thus decreasing the time required for ideation towards sales activities, decreasing indecision and also informing or conveying the business decisions with the assistance of trend analysis and historical analysis. 62% of the retailers are keen on investing in this disruptive technology (Lo et al, 2014).

Retail is increasingly becoming more about providing exciting experiences to the customers but they want to bring the change with modification has done in the transaction process. Their chief aim is to provide seamless online experience to their customers. Some of the retailers focus on improving their services and various categories of merchandises. These involve automating cash registers that are required for small product purchase (Krasyuk et al, 2017). It also helps in reducing the queuing time. All these activities are monitored through the AI. It aims to improve the one to one interaction with the support of trend data and detailed consumer or customer history. It does not require the presence of physical sales staffs. Today’s organization prepare strategy around the various functionalities of AI. AI’s importance is also present behind the storefronts also. Warehouse dependent retail outlets are fulfilling their objectives with the AI technology. Automated systems are involved in the process to ease the entire warehouse operating system. It helps in processing more customer order per hour (Chovanová  et al, 2015). The business enterprises are also trying to decrease cost through the allocation of more floor space in the warehouse. Automated carts and robotics displacing merchandises from one place to another, thus helping in packing and picking merchandises effectively and efficiently.


             The AI in retail industry helps in saving costs

             Increasing the manufacturing capacity

             Increasing the income

             Helping the management to take improved decisions

             Automated tasks and processes

             Capability to recognize new income ways

             Effective expansion of the staffs skills and knowledge

             Skilled delivery of the new merchandise and its services

             Prescriptive and predictive analytics

             Capability in testing

             Designing new concepts with the customers

             Increasing the ability of the organization to innovate new services and customized products

             Pooling highly skilled personnel (Ball et al, 2015).


It is quite evident that AI has the ability to take away many routine jobs from the employees. The technology will also bring in many alterations the way an organization interacts with their customers and other stakeholders (Manyika, 2017). To keep the people at par the business enterprises must take initiative in providing training and development sessions related to the AI systems and processes. As every technology requires to e stay updated, in the same way, the employees also must look after their skills in order to satisfy the objectives of the organization.

Technology is considered to affect any human life. Eventually it will affect human lives widely. This might hamper the future transformation process of the organization (Nikolaidis and Charalambous, 2015). Therefore, it is necessary to abide by the code of AI ethics in every business scenario or sector. When it comes to considering AI ethics, it is necessary for the retailer who is thinking of investing in the solutions, which will change the procedure of how employees are working. It will also change the procedure of how consumers are interacting with the companies. Ethical implications if abided in the sector has the capability of transforming the retail sector into a fair way of representing everything to their customer is thus increasing loyalty (Ramayah and Yeap, 2017).


AI is assisting the retail sector in boosting the consumer interaction process, improving new techniques of supply chain, assuring web-based sales and enhancing the physical store sales. Very few organizations have lived up to the ethical standards of the AI. Ethical amalgamation with the AI is necessary to avoid future complication in the business activity. The successful usage of AI can be done by maintaining balance between skill developments, people engagement and infusing automation.

Recommendation for making video

Using power point presentation tool, the learner can select the retail sector and Artificial Intelligence’s influence in helping the business to grow. It must also provide images and graphs to support the video. Industry examples to illustrate various AI retail processes must be identified significantly. A 10-slide ppt is enough to satisfy the entire content of Artificial Intelligence’s importance in the retail sector. Any company can be chosen such as ASDA, Tesco, Sainsbury, Amazon, and Flip kart, Walmart or Spencer’s. Comparison in the customer experiences will prove the relevance of the subject and its content. The retention rate of the customer can be included. The learner can give bullet form of data. Any distinction must be presented in the tabular format. While providing and chart, use of Microsoft excel must be used. Usage of too much of graphic content must be avoided. The proper balance between the content and the audio must be synchronized efficiently. Recommendations, conclusions, benefits, usage and complexities must be outlined in the video.

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