Chapter 1: INTRODUCTION

Artificial intelligence is not a strange term for everyone today. Artificial intelligence’s practical
applications appear everywhere in the house and outside: in the office, the bank, the hospital, the
factory, the internet and even in outer space. As everyone can see automated robots, voice
recognition, self-driving car, satellite navigation systems are all the phenomena based on
artificial intelligence techniques. Artificial intelligence seems like a wide area but nowadays
people focus on using its applications in narrow areas such as in healthcare, biology, information
technology as well as in business

Artificial intelligence helps to develop intelligence in software and machines and

create some abilities for them to think and act like a human. The development of artificial
intelligence is past creative ability with different diverse procedures and strategies to execute the
equivalent. In business, its techniques bring many benefits for a company such as improving
customers’ decision-making, predicting the revenue correctly, reducing expenses as well as
increasing customers’ purchasing experience.

In today’s date, it has become very common to see machines and robot performing the
daily simple and mundane tasks of humans to make their lives easier. Given the world we are
living in which is highly profit-driven and serving customers across the globe despite the time
and business needs, Artificial Intelligence has become an indispensable part of people’s life. It is
AI which allows a business to investigate in real-time and bring more efficiency in their work
and also helps in countries safety, security It can be said that in today’s date ecommerce is one
such industry which is using Artificial Intelligence at its best by generating huge customer base,
understanding customer needs, doing real-time research, coming with end solutions to problems
and a lot more.

E-Commerce in the Era of Artificial Intelligence

We are no longer at the cusp of an era of artificial intelligence; we are living in it. Our daily lives
are peppered with gadgets that use voice recognition, search predictions, and facial recognition.
From systems that forecast the weather to those that predict stock prices, to self-driving cars we
are breaking new frontiers so rapidly that we rarely stop to think, about the constant evolution of
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these machines as we use them.
Artificial intelligence, simply put, is the ability for a machine to learn. It does this by continually
analyzing patterns from the data it collects. The greater the collection of data, the more accurate
the machine can become at making predictions.
Gartner, Inc, projects that over 25% of customer
interactions will be managed with virtual customer
assistants by 2020. Machine-learning technologies
can go beyond the scope of humans by learning and
understanding every individual customer, even in an
audience of millions. In recent decades, AI research
has seen unprecedented acceleration. From the year
2008 to 2012, it was growing at roughly 5 percent annually; but since then, it has boomed with a
growth of more than 12 percent annually. Today, Europe still leads in AI research, but within the
next four years, China is predicted to take over as the global pioneer in artificial intelligence.
At the same time, trends have been changing in the world of business and retail. In 2018, e-
commerce sales accounted for a whopping 11.9% of all retail sales worldwide. The number of
global digital buyers is expected to rise to over 2.14 billion by 2021.

Artificial intelligence In E-commerce

AI helping e-commerce businesses get closer to their customers. With the facilities of AI,
e-commerce platforms today are able to utilize large datasets regarding customer
behavior and usage patterns. Artificial intelligence self-learning algorithms can create
personalized shopping experiences for online buyers.

Following are highlights on AI powered ecommerce:

1. Real-time product argeting :-
E-Commerce Companies aim to offer their customers a best offline shopping
experience to the online space, by offering the consumers a hassle-free way to

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 discover the products they are looking for. Machine learning can help to present
online shoppers with personalized product recommendations, discounts and offers.

2. Visual search:-
Image recognition platforms can help e-commerce websites visitors search by
image, instead of text, and match relevant products to specific images. One
example of the visual search is Pinterest‟s visual search which enables users to
select an item in any photograph online, and then ask Pinterest to display similar
items using image recognition software.
3. AI based hiring processes :-
HR departments can use AI technology in many ways. For example, the task of
screening applications, reaching out, scheduling face-to-face interviews, and
finding matches can be automated through Restless Bandit, software as a service
product. This reduces the work of HR by providing the potential candidate for the
job.
4. Voice Powered Search:-
Voice is slowly replacing text based search in online shopping. Voice recognition
accuracy is improved than before. Almost 70% of requests are natural or made in a
conversational language with Google assistant.
Some smart devices with voice-controlled personal
assistants are Apple HomePod powered by Siri
Another example is Amazon‟s Echo powered by
Alexa. Alexa voice based search can be used to
place an order to be shipped from Amazon.
According to study by ComScore, 50% of the
searches will be based on voice searches by 2020.
5. Conversational commerce :-
Chat software can help the shoppers make
purchases in a conversational text format using natural language processing.
Chatbots are already being used to facilitate online transactions for the big brands,
with TacoBot (Slack) and H&M (Kik). Famous brands like Tommy Hilfiger

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 launched a Facebook Messenger Fashion Chatbot during the New York Fashion
Week 2016. It was the first brand to sell their collection through Facebook
Messenger
6. Virtual personal shoppers :-
Virtual personal shopper can assist the people in making the smart decision about
their shopping, for example Flipkart launched a messaging service called Ping.
Ping has worked as a shopping assistant until shutdown on 2016. It was powered
by artificial intelligence to assist customers to quickly discover the items they were
looking for. Amazon‟s home assistant, Alexa is also artificial intelligence enabled
virtual personal shopper assistant. It provides the
customer modern shopping experience and only
needs to verify your voice pattern to process the
order. Other example of the shopping assistant is
Mona. Mona is an Artificial Intelligence powered
mobile shopping assistant provides the customer an
expert assistant. Mona learns from the styles
customer likes, his ideal shopping point and his
favorite brands.
7. Virtual Assistant :-
E-commerce virtual assistant is a software agent skilled in business support
services and technical services. It can also perform tasks or services for an
individual. The term "ChatBot" can also be used to refer to the virtual assistant.
Recently Lenovo has also announced its virtual assistant to compete with Google
now and Cortana. CAVA assistant is based on AI-powered deeplearning .It has the
face and voice-recognition feature that assist in managing data and other events.
Some ecommerce tasks that virtual assistant performs are:
1. Good customer service
2. Order processing
3. Exchanges /Return
4. Order
5. Website maintenance

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 8. AI fake reviews detection :-
Customer reviews have become important for consumer trust in the online
shopping. According to Dimensional Research‟s recent study, 90 percent of
respondents said that positive online reviews influenced their buying decisions.
But, fake reviews can affect the buying decision.AI can be used to manage this
problem. Amazon also uses AI to combat fake product reviews. Amazon‟s AI
machine-learning system ensures that only verified customer purchase reviews are
boosted. It also gives preference to those reviews that are marked as helpful by
other users.

THE ROLE OF AI PLAYS IN BOOSTING AND BENEFITING THE ECOMMERCE INDUSTRY.

 Chat Bots The best part about shopping online is that the ecommerce websites assist its
customers with 24*7 customer support and help. This has been all possible because of
Chatbots.ChatBots can be defined as a type of software application which makes use of
AI to have online chat conversations via text or speech medium with people visiting on
the website.
 Artificial Intelligence helps to achieve the sales
goals There is no hiding to the fact that if the sales
are on the right path, they can make the world go
ound and also ecommerce is a field which is all
dependent on sales. This is the reason why Artificial
Intelligence is used here as it can help the ecommerce companies to find a clear
perspective which can ensure higher sales and a whole customer journey process.
 Artificial Intelligence can help ecommerce companies to do away with redundancies by
simply automating the usual processes so that personalized marketing can be offered.
This can be better understood with the simple andChat Bots The best part about shopping
online is that the ecommerce websites assist its customers with 24*7 customer support
and help. This has been all possible because of Chatbots.ChatBots can be defined as a
type of software application which makes use of AI to have online chat conversations via
text or speech medium with people visiting on the website.

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  Artificial Intelligence helps to achieve the sales goals There is no hiding to the fact that if
the sales are on the right path, they can make the world go ound and also ecommerce is a
field which is all dependent on sales. This is the reason why Artificial Intelligence is used
here as it can help the ecommerce companies to find a clear perspective which can ensure
higher sales and a whole customer journey commonly used example of a chatbot. By
now, we suppose that all the people must of aware of the great benefits these chatbots
brings to the business by helping them to save a lot of money in customer service
 The primary goal of every ecommerce company is to provide the best customer
experience to all their clients and this is what AI
helps them to achieve. Starting right from the
cataloguing, designing the products to making
sure that the customer is having the best
experience. It can be said that it is the Artificial
Intelligence itself which helps people in the
ecommerce industry
 With Artificial Intelligence one can know about
the satisfaction of the customers and how to
address the needs and requirements of the customers irrespective of the time and
situation. One should note that if the customer service of a business is great then it is
going to yield huge volumes of profiting sales. Artificial Intelligence helps people to
construct such a balanced environment in which a man and the machine work together to
achieve profit and sales

The Growth of eCommerce With Artificial Intelligence

AI is getting a mo re interesting concept among eCommerce businesses. With the

increasing benefits of artificial intelligence in eCommerce, customers are leveraging smoother
and simpler shopping experience on the internet than ever
before. Today, AI is available everywhere starting from
chatbots, virtual assistants, e-learning to eCommerce.

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With the increasing capabilities and applications of AI, we have seen the influence of AI in all
major fields including web development, content marketing, retail, travel, healthcare,
eCommerce. The way AI has touched every aspect of life has dramatically changed. Everywhere
you can notice the presence of AI.

While machine learning and robots helping us in such a way that is beyond the imagination of
human beings, many eCommerce companies have implemented machines to take care of
mundane tasks to focus their energies on managing other tasks that required human attention more
than anything else.

Encourage Customer-Centric Visual Search in eCommerce

It’s hard to accept it even for writers, sometimes, finding the right words to find exactly what
you have envisioned in your mind is quite tricky. When it comes to finding the products online,
you started to imagine things…

Initially, customers were not satisfied with the

eCommerce experience because product results are
often irrelevant from the product they are actually
looking for. To tackle this blunder, AI has started using
natural language processing to minimize the issue and
narrow down the most relevant search results for online
shoppers. AI in eCommerce has dramatically improved
the visual search capabilities, finding and matching products close to your search.
It’s simple, just click a picture, upload it and let the AI finds the same for you.While this
Google Goggle technology is not new, but visual intelligence has greatly improved the
technologies to deliver the excellent user experience.

For example, Amazon has already introduced the visual search into its main iOS app in
2014 and giving users the facility to find anything through their smartphone’s camera.

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How Artificial Intelligence has influenced e-commerce

AI retains the power to analyze vast tracts of data, and that includes human behavior.
If you were to look at it from the customer's view point, the ushering in of the digital era, and
now AI, has leveled the field for the buyer vis-a-vis Price and Product Offering. All that a
customer has to do to get the best price or the best product in a price range is to use his portable
computing device and search the entire marketplace for what they want. ow affects almost every
stage of a customer journey. What is the facilitator today is that consumers live in an omni-
channel, multi-channel world, and AI provides a means to enable informed and intelligent
responses across all these platforms.

It is also a known fact that good customer service means

good business. And good customer service never ends at a
sale; it continues way beyond that.

The use of AI in a buyer's journey for now may be in an

early stage, with some brands testing the water by
introducing chatbots. But experts believe the day is not far
off when AI will affect every stage of the customer journey - from marketing messages, ads,
product design and shipping.

Virtual shopping assistants or recommendation engines that help consumers find a product from
catalogs is another area where AI is helping. Even real-time recommendation even as a
shopper is in the store looking up what's on display.

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Chapter 2 : Research Methodology

2.1 OBJECTIVES OF AI IN E- COMMERCE

AI in e-commerce helps to achieve this objective. It enables companies to gather as

well as investigate data in real-time, thus facilitating more efficiency and competence in
business. The customers are provided with a personalized experience on of knowledge
about their preferences.

1. Retarget Potential Customers and Improve the Sales

Process
This means that pre-qualified potential buyers
interested in a product are just left behind. Also, many
teams are overloaded with unmanageable customer data
that they do little or nothing with. And that’s when AI is a real necessity. Artificial
Intelligence could help with enhancing the sales cycle, by tailoring your problem-solving
solutions and creating a strong sales message that reaches consumers at the right time on
the right platform. Nowadays, there are many AI systems that enable NLP and voice input,
for example, Siri, Alexa, etc. This allows a CRM system to answer customer queries, solve
their problems and even identify new opportunities for the sales team.

2. New Level of Personalization

Now we can find a lot of AI solutions, for example, one of the them that I really want to
mention is Boomtrain. This company analyzes different touch points to help the business analyze
how customers are interacting online: via mobile app, web, email, etc. And the AI engine is
monitoring all devices and channels to create a universal customer view. So, not just one
channel, but all the channels. And of course, it helps eCommerce retailers to deliver a seamless
customer experience across all platforms. It will help to send relevant messages at the right time.

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 3.Improve Recommendations for Customers
AI brands can more intelligently and efficiently predict
customer behavior and demand, and offer relevant and helpful
recommendations. Excellent example is Starbucks, it uses AI to
analyse all the data it has gathered to deliver more personalised
suggestions. The algorithm takes into account: customer’s
information, customer preferences, purchase history, third-party
data and contextual information.

4. Filter Fake Reviews

Unfortunately, fake reviews became an issue for
online retailers and eCommerce shops. However, as we
know there are fake reviews published by competitors,
bots, etc. So, how AI can manage this problem?
Nowadays, many eCommerce businesses use Artificial
Intelligence to fight astroturfing by putting more emphasis
on verified and helpful reviews. For example, Amazon
uses AI to combat fake product reviews and inflation of
their popular star ratings. Their AI focuses on prominence
and weight of verified customer purchase reviews and
boosts them. AI also takes into account hose reviews that are marked as helpful by other users.

5. Automation
AI doesn’t mean that the robots are taking over.
Nowadays, a lot of people are scared that everything will be done
by robots in the nearest future. No, not really! Robots offer
opportunity to retailers to provide exactly what the customer
wants, when they want it, by using technology and algorithms.
As firms in the eCommerce industry continue to expand and that
means having a growing number of customers, automation
becomes a must and became one of their top investment priorities
for eCommerce stores. What is more, as we know, when
eCommerce businesses start growing, the number of repetitive tasks grows as well. Robots can
take them over; everything from publishing new products on multiple channels to scheduling
sales, giving discounts to loyal customers, etc.

2.2 How AI Is Challenging Etommerte Relationships

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Artificial intelligence (AI) is not just transforming ecommerce. It’s also breaking down barriers
and challenging assumptions on buyer-seller interactions.

 Smarter Personalization
AI is also making personalization better and smarter. It allows marketers to get closer
to behaviors in a scalable and practical way. AI can pick up on where loyalty programs have
failed. They build loyalty by understanding your individual needs, the best times for various
triggers, how sensitive you are to price differences and your preferred channels.
AI has the power to orchestrate all the parts of ecommerce into one seamless, logical
flow. What’s more, it can do it in a way that’s truly personalized and individualized for each
customer.

 Challenging the Interface

The best ecommerce interface might well be no interface — AI bots act as personal
shoppers to cater to your every whim and fancY. Lots of supermarket chains have customer
cards of some kind or other. They’re collecting huge sets of data about our shopping behaviors:
when and where we shop, what products are our staples, whether we go for the premium
line. Most of them are using simple, rules-based AI to pepper us with discount coupons or
special offers. A few are experimenting with AI to create true omnichannel experiences. Your
mobile app could act as a store assistant guiding you through the shelves to find all the
ingredients for the perfect lasagne bolognese.

Behavioral marketing has pushed businesses into new platforms and tactics. Digital businesses
are building brick-and-mortar stores.

 Fusing Brands and Channels

AI is challenging conventional marketing by enabling connections that were previously difficult
or impossible to make.

One of the hardest things to do in ecommerce is to build seamless, consistent customer

experiences across different channels, as they take varied journeys on desktops, mobile or
physical stores. AI is already being used to smooth these customer journeys, by making logical

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connections and machine learning to create scenarios. But it’s a prime instance of how a retailer
has combined brands and experiences to connect with a particular audience.

 Competition & Competitor Analysis

Always do a thorough analysis of your competitors. Find out
what products they are selling, how they are generating leads and how they
keep in touch with their customers. The next step would be to make sure
you stand out – be it the colors you use, the topnotch functionality of your
website or amazing user experience. And fnally, ofer services or products
that are unique and rele

 Product Return & Refund Policies

When an eCommerce site says “no returns or refunds” it makes a shopper nervous
and less likely to trust the retailer. When shopping online, customers want the flexibility of
making a mistake that doesn’t cost them. Customer satisfaction is the most important factor for
any retailer. Therefore having a flexible return and refund policy not only helps with customer
satisfaction with it also helps with customers making purchases without being nervous.

2.3 Techniques and tools of AI that helps in E-commerce

1. User Experience by AI:

Shoppers have a high bar on user experience. Machine Intelligence can influence them with
a best-in-class user experience. It helps you in designing a brand new website or adding smart
widgets to your existing site. e-Commerce increases conversion rates by combining machine
learning models, users’ buying patterns, external stimuli and on-screen behaviors to deploy
personalized product pages e-Commerce increases conversion rates by combining machine
learning models, users’ buying patterns, external stimuli and on-screen behaviors to deploy
personalized product pages.

2. Predictive pricing :

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 A.I. tools can add a dynamic pricing layer to your store. personalized incentives to
increase the sales. Their Intelligent Incentive platform uses machine learning algorithms,
developed by data scientists and behavioral economists, to perform precision targeting of
shoppers with intelligent incentives, offering the optimal incentive type, level, and experience in
real-time.

3. Marketing & Analytics:

AI analyst provides user-friendly proposal and solution for complete website enhancement
needs. Connect your Google Analytics in a few easy steps to get weekly and monthly reports.
Provide detailed simplified advice with predicted future outcome based on analysis of accessed
data. You can enhance your website with these actionable insights. Learning of past data
provides detailed reporting on increase and decrease of Customer Lifetime Value. Suitable for all
e-commerce businesses.

4 Generate sales through wearable technology

Wearables have the impressive ability to collect data beyond just what eCommerce
platforms do today.Some wearable technology can see what products you view, define your
taste, and can instantly recommend personalized products.

AI integration will be at the core of any further development as retailers enhance the experience
with customer data. Forward thinking eCommerce retailers will undoubtedly want to build new
partnerships with the best AI technology to stay in touch with their growing customer global
customer base.

5 Dialogue systems.

Amazon have started to apply AI to widely known issues with dialogue systems, such as speech
recognition, natural language understanding Amazon are also tackling the problem of answering
questions automatically using AI by leveraging content within website pages such as product
descriptions and customer reviews.

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For example, a customer may ask “how many USB ports are there on this specific laptop? More
complex questions would include “does this camera work indoors?” or which TV out of these
two has better image quality? AI is providing new opportunities for eCommerce retailers to
engage with customers.

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 CHAPTER 3 LITEATURE REVIEW

1 .Yen-Yi, 2006 Electronic business methods enable companies to link their internal and
external data processing systems more efficiently and flexibly, to work more closely with
suppliers and partners, and to better satisfy the needs and expectations of their customers.
Ecommerce refers to more strategic focus with an emphasis on the functions that occur using
electronic capabilities.

2. Rahmath Safeena, Hema Date and Abdullah Kammani in January 2001 states that,
the various areas where the banks are preparing to use ebusiness approach include familiar
and relatively mature electronically based products in developing markets, such as telephone
banking, mobile banking, credit cards, ATMs, and direct deposit. This means that most of the
banks have recognized the need to change their business process to conform to changing
business trends in order to keep up with competition The development in the e-business
however means that an increasing number of jobs are being changed from traditional tellers
to branch advisors/ counselors. Bank staff is increasingly asked to provide highly qualified
financial advice rather than perform simple teller functions. By using intranet the
communication is very fast in the banks. The banks can handle their transaction very fast
online, using e-banking.

3. Windrum, and De Berranger in 2002 focussed on the integration of the internet and
related ICTs into the business organization forming ECOMMERCEs. It has two facets. One
is the integration of the supply chain so that production and delivery become a seamless
process. The other is the creation of new business models based on open systems of
communication between customers, suppliers and partners. Where the integration of the
supply chain provides increased efficiency and significant cost advantages through waste
minimization, the development of new products and services are facilitated by new ways of
conducting business based on internet working between organizations and individuals.

4. Basu and Muylle (2007), companies can gain two fundamental types of benefits from e-
Business. These are generally described as: Value Creation or Value Enhancement for one or
more of a company’s stakeholder groups; and Lower Cost of providing goods and services to
the market place. Examples under Value Creation include Improvement in internal and

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external communication through effective emarketing, Increment of sales through an e-
commerce website integrated with a back office systems and Improvement in supplier
relations and productivity through collaborative workspaces (Basu and Muylle, 2007). And
examples under Lower ost are: reduction in communication and travel costs using online
meeting tools; shared workspaces and; benefit from license free open source alternatives to
proprietary software.

5. A. K. Sohani, 2009 Businesses also see tremendous opportunities for cost saving, revenue
generation, increased market share, marketing and market access, and improving customer
service through direct links that facilitate speedy enquiry and feedback. Similarly, consumers
can inter alia, access the world market through the virtual economy on the Internet, choose
from a wider variety of products, and shop in the comfort of their homes. Globalization and
specifically liberalization of communication networks have all facilitated this break-through
that further presents a massive boost for international trade.

6 Karjaluoto in 2002 indicated that banks have the choice to offer their banking services
through various electronic distribution channels technologies such as Internet technology,
video banking technology, telephone banking technology, and WAP technology. They also
indicated that Internet technology is the main electronic distribution channel in the banking
industry. In other words, e-banking as an online 10 banking that involves the provision of
banking services such as accessing accounts, transferring funds between accounts, and
offering an online financial service.

7. Chiemeke (2006) conducted an empirical investigation on adoption of e-banking in

Nigeria. The study identified the major inhibiting factors to Internet banking adoption in
Nigeria such as, insecurity, inadequate operational facilities including telecommunications
facilities and electricity supply, and made recommendations on how Nigeria banks can
narrow the digital divide. Also, the report revealed that Internet banking is being offered at
the basic level of interactivity with most of the banks having mainly information sites and
providing little Internet transactional servicesChiemeke (2006) conducted an empirical
investigation on adoption of e-banking in Nigeria. The study identified the major inhibiting
factors to Internet banking adoption in Nigeria such as, insecurity, inadequate operational
facilities including telecommunications facilities and electricity supply, and made

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 recommendations on how Nigeria banks can narrow the digital divide. Also, the report
revealed that Internet banking is being offered at the basic level of interactivity with most of
the banks having mainly information sites and providing little Internet transactional services.

8. Ayo (2006) investigated the prospects of e-commerce based on ability, motivation and
opportunities (AMO) model and observed that virtually all companies have online presence.
The paper reported the motivation and opportunities for e-commerce as low based on lack of
e-Payment infrastructure and access to information and communication technology.

9. L. G. Pee is an Assistant Professor at the Wee Kim Wee School of Communication and
Information, Nanyang Technological University, Singapore. She completed her Ph. D. in
Information Systems and Bachelor of Computing at the National University of Singapore. Her
research focuses on social informatics of knowledge, ranging from theory to design to
implementation of digital information and knowledge practices. LG collaborates actively with
researchers in other disciplines on problems related to future workforce and sustainable
innovation. As a principal investigator, she has received more than SG$1,300,000 in research
funding from government agencies as well as industry partners. She serves on the editorial
review board of top information science journals such as International Journal of Information
Management and programme committee of conferences such as International Conference on
Information Systems. LG has received several best paper awards and COVID-19 Learning
Action Award by the Association of Information Systems (AIS).

10. Rina, 2016 Despite innumerable prospects, the growth of e-commerce in India has not been
upto its full potential due to certain challenges that inhibit the growth of firms. The growth of
digital commerce in India is impeded by inadequate infrastructure, logistics failure, lack of tax
uniformity and declining margins. In the face of intense competition, firms have to pamper the
customers with huge discounts, everyday offers and liberal returns policy which proves
detrimental to their profits. As against the firms following inventory model, emarketplaces are
more adversely affected by subsidies as they have to offer incentives to the seller for listing their
products on the website in addition to the humungous discounts and wide range of offers to the
customers. The increasing fulfillment costs (includes every cost incurred from the point an order
is placed till the time its delivered to the customer.), lack of last mile connectivity in many sub-
urban and rural areas and the rising reverse logistics also hinder the the growth of e-commerce
firms by resulting in huge loss

11. Sudhir Allam, October 4, 2016 Artificial Intelligence (AI) transforms businesses and
organizes innovation activities. AI could compel companies to restructure the whole innovation
process in response to rapid technological advancement and the rearrangement of human
resources. Society at large sees artificial intelligence (AI) as a representation of unlimited
possibilities. AI will contribute to fresh, more efficient market models and efficient, public sector

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and user-centered services. The objective of this research was to explore the impacts of AI in
innovation and its outlook in the U.S and the economy. According to a worldwide survey of 203
managers, health and life sciences, manufacturing, retailers, and financial institutions are
involved in testing water, especially in The United States. Among these entities, about one-third
of businesses are exploring AI technology and its implementations, while another third is
experimenting and a tenth of them are using AI in small fields. They are now in the exploratory
stage.AI has also been deployed extensively by a handful of the companies (2.5%). This paper
will illustrate how AI can fix problems and what it is necessary to consider when transforming
innovation into a global economy. Finally, the paper will explore insights into the potential of AI
in the U.S.

12. Mishra & Kotkar(2015) trace the timeline and development of B2C e-commerce in “A
Study on Current Status of E-Commerce in India: A Comparative Analysis of Flipkart and
Amazon”with its inception in the mid 1990s through the advent of matrimonial and job portals.
However, due to limited internet accessibility, weak online payment systems and lack of
awareness, the progress was very slow.The two industries poised to invest highly in AI in the
future are banking and retail (i.e. e-commerce) (Mou, 2019). For instance, Soni et al. (2020)
show that of a sample of global AI start-ups in 2017 and 2018, commerce applications increased
from 1% of the total start-ups in 2017 to 5% of the total in 2018; whilst fintech and insurance
increased from 4% to 5% in the same period. This might explain why intelligent finance and
intelligent e-commerce (the application of AI technologies in finance and e-commerce) are
growing rapidly, with e-commerce expected to be worth USD 4.8 trillion in 2021 (Jiao, 2018).
Fintech means technological instruments developed to meet users’ financial needs and demands,
with the most popular development being automated or assisted management of investments by
means of AI Patenting activity in intelligent finance grew substantially from 2011, topped by
China and the US, but with the US leading in terms of R&D capacity (HE, DU, & QIAO, 2020).
Patenting in e-commerce is led by the US and China – Amazon and Alibaba, respectively. For
these 2 giants, alongside AI use in directed e-commerce advertising, the most important
patenting activity is associated with computational systems extracting big data information to
predict business behaviour (Trappey, Trappey, Wang, & Hsieh, 2018). Whether AI patenting in
fintech and e-commerce increase firms’ TFP is an analysis still missing in the literature. This is
the main contributing focus of this report.

13. Mishra & Kotkar(2015) trace the timeline and development of B2C e-commerce in “A
Study on Current Status of E-Commerce in India: A Comparative Analysis of Flipkart and
Amazon”with its inception in the mid 1990s through the advent of matrimonial and job portals.
However, due to limited internet accessibility, weak online payment systems and lack of
awareness, the progress was very slow.

14. Das & Ara(2015) observe in “Growth of E-Commerce in India”that though online travel and
hotel bookings still control the lion’s share of e-commerce market, their share has comparitively

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fallen over the years due to the recent augmentation and consequent rise of e-tailing services.
There has been a tremendous surge in the volume of investment in this sector. With the e-
commerce markets in the west reaching their saturation, investors see tremendous potential in the
Indian market, in the light of which, many start ups have received funding from venture
capitalists and private equity firms.

15. Deshmukh, Deshmukh & Thampi (2013) recognise another important development: m-
commerce, which they identify as a subset of e-commerce. “Transformation from Ecommerce to
M-commerce in Indian Context” reviews the current and potential status of e-commerce and
mcommerce in the Indian market, while projecting the latter as the potential future. The paper
discerns ubiquity, personalization, flexibility and immediacy as the singular advantages of m-
commerce. The authors affirm the idea that smart phone penetration and rise in inetrnet user
base, mostly driven by youth, shall propel the growth of e-commerce. Statistical data is used to
emphasize that the infrastructure requisite for m-commerce development already exists,
however, it is yet to be properly deployed. With mobile penetration providing a boost to digital
downloads and enabling cheaper monetary transfers, the need of the hour is to enhance customer
confidence by providing them assurance of safety and privacy, which shall accelerate movement
towards a cashless economy

16. 1965 I.J. Good pointed that conniving a wise intelligent system is itself a challenging task.
The achievement of such systems could result in provoking an intelligence detonation which will
leave the human intelligence way too far behind. By designing radical latest technologies, and
thus produced super intelligent system might be able to help us wipe out poverty, disease or may
be even war. But so the creation of such a strong AI system might also be the last, until and
unless we learn to align our goals with that of the Artificial Intelligence. Now as we know that an
AI has the capability to turn into more intellectual than any human ever, we can’t predict how
it’s going to behave. We won’t be able to use previous developments in technologies because of
the ability to outsmart us willingly or unwillingly

17. Yoky Matsuka of Nest believes that in the near future an AI system will be developed which
is going to be useful for the people with amputated limbs, as the brain will be able to
communicate with a robotic limb to provide more control to the patientBeing human has its own
flaws and one of the biggest disadvantages of being a human is simply our own body and brain.
Now, according to a researcher Shimon Whiteson it is possible to augment ourselves with
computers in the near future in order to improve our own natural abilities.

18. Hadis Z. Nejad January 2013 A decision support system was researched and applied to a
case study in the petrochemical industry. The participants were an insurance company
underwriting the policies of oil and gas refineries located in a major oil producing nation. The
Chemical Process Quantitative Risk Analysis methodology was applied as a framework to

19
implement uncertainty quantification and risk analysis using a specialized commercial DSS
software product. A gas vapor explosion was simulated at an oil refinery, to predict the fire and
radiation damage. Costs and risks were entered into the model based on historical data. Loss
estimates were generated for equipment and buildings located various distances (pressures) from
the explosion origin. Overall, the DSS model predicted an expected loss of over $14,000,000
USD for equipment located in the 50 meter explosion radius, which represented a loss ratio of
almost 52%. The losses predicted from the DSS model were comparable to the literature and to
experiences of the case study company.

19. Elena Mihaela Nechifo his study aims to empirically cover the impact of the use of artificial
intelligence through chatbots on online retail in terms of content implemented in the
communication process. The presented research brings a contribution to the specialized literature
by analyzing the perceived utility and demonstrating the facility, key concepts of the Technology
Acceptance Model. In this sense, ten online stores in Romania were studied, selected according
to the number of users, the research being carried out through a non-reactive method - content
analysis. The method of data collection was that of the “mysterious client” in order not to
generate a change in the behavior of the entities studied. The interpretation of the data obtained
through the content grid allowed a horizontal and vertical approach that led to a series of results
that confirmed the low level of performance of market leaders, as well as the high potential of
this type of technology applied in the field. Regarding the impact of the use of chatbots, it has
been shown that poor quality of the content displayed to users affects the consumer's journey, the
point of satisfaction not being reached in these conditions.

20. Apostolov, Nikola (2019) This article focuses on the potential ethical issues that could
arise from implementing artificial intelligence tools into advertising personalization for E-
commerce stores. As almost every company advertises their product on the Internet users
are exposed to thousands of ads each day. In order for firms to stand out, advertisers
personalize their ads to individual level with the goal that the customer will find the content
relevant and will convert. As the technology is evolving, new software and algorithms are
implemented by companies, in order to optimize the process of personalization and provide
more relevant content. The next step is implementation of Artificial Intelligence in the
personalization process and ethical dilemmas are arising. Advertisers and algorithm
developers are trying to implement more efficient techniques, but at the same time an
extensive overview should be made over the potential harms Artificial Intelligence could
make. This article aims at identifying the future application of Artificial Intelligence, in order
to recognize the potential arising ethical issues and recommend how E-commerce stores
should proceed with respect to the users of the Internet.

21. Russel and Norvig (2016) artificial intelligence describes machines (computers) that
simulate cognitive and affective functions of human mind. The development of Artificial
intelligence is phenomenal and experts have worked tirelessly to advance AI concepts over the
few decades. The work led to some major innovations like big data analytics and machine
learning applications in myriad sectors and context.

20
The term Artificial Intelligent generally leads people to think only about automated robots who
work for humans because the people have only seen the human-machine interaction in the
movies or any shows through robots only. Artificial Intelligence applies to any kind the machine
that needs to think like a human resulting in continuous learning and problem-solving. These are
the features of AI that make it unique. Sometimes people find a task boring or dull, which is
repetitive. However, with the help of a machine, people never have to experience a similar job as
boring. An artificially intelligent system does repetitive jobs for humans continuously. AI-
enabled systems are designed to observe and react to their surroundings. They perceive the
environment and take actions accordingly and keep in mind the situations that might come up
soon. For example, AI, with the help of historical data, can predict the breakdown time of a
machine. It can alert us for the action beforehand.

22. Gacanin and Wagner (2019) Artificial intelligence is that human intelligence can be
transferred to machines to execute tasks from the simplest to the most complex. The objective of
artificial intelligence is to learn, do reasoning & execute the activities. As technology moves
forward, previous standards that explain artificial intelligence become outdated. There are three
basic concepts behind Artificial Intelligence. These basic concepts are machine learning, deep
learning, and neural networks. These concepts are leading to further development of data
mining, natural language processing, and driving software. While AI and machine learning may
seem like interchangeable terms, AI is usually considered the broader term, with machine
learning and the other two AI concepts a subset of it.
The mechanism of Deep learning is based on the principle of artificial neural networks. It
imitates neurons or brain cells. Artificial neural networks were inspired by things we find in our
biology. The neural net models use math and computer science principles to mimic the human
brain processes, allowing for more learning & command to act. An artificial neural network
integrates the processes of densely interconnected brain cells, but instead of being built from
biology, these neurons, or nodes, are built from human-made code.

Neural networks contain three layers: an input layer, a hidden layer, and an output layer. These
layers contain thousands, sometimes million nodes. AI imitates human minds through the
concepts of neural networks. It thinks the way a human thinks & acts accordingly to solve the
problems. This is the uniqueness of AI. AI imitates human brain to interpret the environment &
act accordingly.

21
CHAPTER4: DATA ANALYSIS, INTERPRETATION & PRESENTATION

4.1 Data Analysis

This study helps to understand the students experience about how the artificial intelligence
impacted their life. The main purpose of the study was to gather evaluative feedback from
students on their experience about the impact of AI in E-commerce Industry.

4.2. Age of Respondents

4.3 How has AI influenced / Impacted their private life

4.4 What is the future of E-commerce in India

4.5 AI conversion of E-commerce industry in next three years

4.6 Prominent domain in which ecommerce is used in India

4.7 How E-commerce is helpful for business discourse

4.8 What they think as AI in the future

4.9 AI for the enterprise

4.10 AI is more of threat or an opportunity for the E-commerce industry

4.11 Artificial intelligence in E-commerce , and its necessity

4.12 Where will the impact of AI in E-commerce will lead the most

4.13 The usage of E-commerce application has increased over the years

4.14 AI will be for good cause or not

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 Table 4.2 – Age of Respondents

PARTICULARS RESPONSE %
18 -25 83 83.20
25-35 11 11.90
35-50 5 5.00

4.2 Graph Age of Respondents

18 -25 25-35 35-50

11.11%
5.05%

83.84%

It is observed that 84% people are of the age group of 18-25, 11% people are of the age group of
25 -35 and 5% people are of the age group of 35-50

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 Table of 4.3 - How has AI influenced / Impacted their private life

How has artiitial in elligente Impat edu/ Infcentedu yocr pricia e life? RESPONSE
NOT AT ALL 58.20%
NEUTRAL 26.70%
A LOT 12.90%

4.3 Graph of how has AI influenced / Impacted their private life

A LOT; 13.19%

NEUTRAL ; 27.30% NOT AT ALL; 59.51%

It is observed that 60 % people are not at all influenced by AI in their life, 27%

Are neutral and 13 % are A lot.

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 4.4 Table of what is the future of E-commerce in India

What according to you is the future of e-commerce in India ? RESPONSE

Do no hacie a fc cre in Induia 33.30%
ciery goodu fc cre 44.40%
tan no say 22.20%

4.4 Graph of Table of what is the future of E-commerce in India

tan no say; 22.22%

Do no hacie a fc cre in Induia; 33.33%

ciery goodu fc cre; 44.44%

It is observed that 33.3% do not think ecommerce have a future in India, 45% thinks very good
future and 22% can not say future has or not

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 4.5 Table of AI conversion of E-commerce industry in next three years

How much will AI change E- Commerce industry in the next three years ? RESPONSE
A lo 72%
No ciery mcth 18.80%
Nec ral 8.90%

4.5 Graph of AI conversion of E-commerce industry in next three years

Nec ral; 8.93%

No ciery mcth; 18.86%

A lo ; 72.22%

It is observed 72% people says A lot for AI will change E- Commerce industry in the next three
years, 19% thinks not very much and 9% thinks neutral.

26
 4.6 Table of Prominent domain in which ecommerce is used in India

Which is the most prominent domain in which e-commerce is used in India ? RESPONSE
Ma rimony 39%
Traciel & ocrism 33%
Real es a e 27%
Banking 29%

4.6 Graph of Prominent domain in which ecommerce is used in India

Banking; 22.66%

Ma rimony ; 30.47%

Real es a e; 21.09%

Traciel & ocrism; 25.78%

It is observed that 30 % of people are prominent to use ecommerce in India ,26% people are for
travel and tourism , 21% are for Real estate and 23 % are for Banking

4.7 Table of How E-commerce is helpful for business discourse :

27
According to you how e-commerce is helpful for business discourse? RESPONSE
Effetticiely ta ers o tcs omer duemandu 55.60%
Can no say 22.20%
Enscres gcaran ee paymen 22.20%

4.7 Graph of How E-commerce is helpful for business discourse :

Enscres gcaran ee paymen ; 22.20%

Effetticiely ta ers o tcs omer duemandu; 55.60%

Can no say; 22.20%

It is observed that 56% of people effectively caters to customer demand, 22% can not say and
22% Ensures guarantee payment.

4.8 What they think as AI in the future

Overall, with regards to technology, AI and the future, what is it for

you? RESPONSE

28
An Optimis 63%
A pessimis 17.80%
I 's Complita edu 13.90%

4.8 Graph of what they think as AI in the future :

I 's Complita edu; 14.68%

A pessimis ; 18.80%
An Optimis ; 66.53%

It is observed that 66% of people are an optimist, 19% are pessimist and 15% says it’s
complicated

4.9 Table of AI for the enterprise

29
 With regards to AI for the enterprise, what do you think ? RESPONSE
I will thange almos ecieryone's bcsiness 85.10%
I 's ocierhypedu in he meduia 14.90%

4.9 Graph of AI for the enterprise

I 's ocierhypedu in he meduia; 14.90%

I will thange almos ecieryone's bcsiness ; 85.10%

It is observed that 85% of people think it will change almost everyone’s business and 15% of
people think it’s overhyped in the media.

4.10 Table of AI is more of threat or an opportunity for the E-commerce industry

30
Is AI more of a threat or more of an Opportunity for the E-commerce
industry ? RESPONSE
A s rong hrea 58.40%
Nec ral 22.50%
An oppor cni y 18.80%

4.10 Graph of AI is more of threat or an opportunity for the E-commerce industry

An oppor cni y ; 18.86%

A s rong hrea ; 58.58%

Nec ral ; 22.57%

It is observed that 59% people thinks a strong threat , 22% thinks its neutral and 19% of people
thinks its an opportunity

4.11 Table of Artificial intelligence in E-commerce , and its necessity

31
Artificial intelligence in E-commerce , is it a necessity ? RESPONSE
No ciery mcth 56.40%
A lo 26.70%
Nec ral 16.80%

4.11 Graph of Artificial intelligence in E-commerce , and its necessity

Nec ral; 16.82%

No ciery mcth ; 56.46%

A lo ; 26.73%

It is observed that 56% of people think it is not very much necessity , 27% people think a lot and
17% its neutral.

4.12 Table of Where will the impact of AI in E-commerce will lead the most

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Where duo yoc hink will AI impat etommerte he mos ? RESPONSE
Sales 68.30%
Marketing 26.70%
o her 11%

4.12 Graph of Where will the impact of AI in E-commerce will lead the most

o her; 10.38%

Marketing; 25.19%

Sales; 64.43%

It is observed that 65% of people think sales impact most in e-commerce, 25 % of people thinks
its marketing and 11% of people thinks other

4.13 Table of The usage of E-commerce application has increased over the years

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Do yoc hink ha he applitation of etommerte has intreasedu ocier he years in induia ? RESPONSE
YES 79.20%
NO 12.30%
CAN NOT SAY 8%

4.13 Graph of The usage of E-commerce application has increased over the years

CAN NOT SAY; 8.04%

NO; 12.36%

YES; 79.60%

It is observd that 80% of people say yes for the usage of the E- commerce application,12%
people think no, 8% people can not say

4.14 Table of AI will be for good cause or not

34
Overall, do you think AI will be ? RESPONSE
A FORCE FOR GOOD 73.40%
IT'S COMPLICATED 12.90%
A FORCE FOR DAMAGING 10.90%

4.14 Graph of AI will be for good cause or not

A FORCE FOR DAMAGING; 11.21%

IT'S COMPLICATED; 13.27%

A FORCE FOR GOOD ; 75.51%

It is observed that 76% of people think its force of good ,13% think its complicated and
11%think it’s a force of damaging

CHAPTER 5 : Conclusions and Suggestions

5.1 CONCLUSION

35
AI is the future and in order to survive this challenging and innovating environment, companies
that haven’t implemented Artificial Intelligence yet, should consider conversational commerce in
their roadmap. AI is at the centre of a new enterprise to build computational models of
intelligence. The main assumption is that intelligence (human or otherwise) can be represented in
terms of symbol structures and symbolic operations which can be programmed in a digital
computer.

There is much debate as to whether such an appropriately programmed computer would be a

mind, or would merely simulate one, but AI researchers need not wait for the conclusion to that
debate, nor for the hypothetical computer that could model all of human intelligence. Aspects of
intelligent behaviour, such as solving problems, making inferences, learning, and understanding
language, have already been coded as computer programs, and within very limited domains, such
as identifying diseases of soybean plants, AI programs can outperform human experts.

I want to say that AI is on the rise in the eCommerce industry, however, it is still far from
being perfect. eCommerce firms continue to improve their AI tools to better match market
demand. They also partner up with other companies to merge their competencies in AI and create
more sophisticated solutions. We believe that Artificial Intelligence in eCommerce will impact
transactions, customer retention, satisfaction, efficiency, and much more. AI is changing the way
we buy and sell online.

I want to say that AI is on the rise in the e-commerce industry, however, it is still far
from being perfect. E-commerce firms continue to improve their AI tools to better match market
demand. They also partner up with other companies to merge their competencies in AI and create
more sophisticated solutions. We believe, that Artificial Intelligence in eCommerce will impact
transactions, customer retention, satisfaction, efficiency and many more. AI is changing the way
we buy and sell online

AI in eCommerce seems to be a perfect combination in which both parties benefit from being
with each other. eCommerce is an industry where applications of machine learning directly
contribute to the quality of the customer experience and business growth.

36
5.2 Suggestions

1. Improving meetings

AI can’t eliminate meetings altogether. In fact, the coronavirus pandemic has shown us how
maintaining human connections is vital, even from a distance – which means meetings are
definitely here to stay.

2. Enhancing sales and marketing

Many off-the-peg CRM solutions now incorporate AI analytics, enabling sales teams to
automatically generate valuable insights. example, AI technology can predict which customers
are most likely to generate more revenue, and which are most likely to take their custom
elsewhere.

3. Assessing and improving customer service

When it comes to call center operations, automation is nothing new; simple inquiries have been
met with automated menu services for some time. But one tech company says it can help
companies automatically judge the quality of human customer service calls. Transcosmos’s AI
solution automatically assesses the quality of service given “at speed with human accuracy” –
and can detect inappropriate and problematic customer service with more than twice the
accuracy of a voice recognition system.

4. Improving product development processes

Generative design is a cutting-edge field that uses AI to augment the creative process. With
generative design software, you simply input your design goals and other requirements and let
the software explore all the possible designs that could fulfill those specifications – meaning you
can quickly generate multiple designs from a single idea. The software does all the heavy lifting
of working out what works and what doesn’t, saving many, many hours of time.

5. Automating content generation

37
This article wasn’t written by a robot. But it could have been. Because, thanks to AI, machines
are now capable of generating engaging, informative text – to the extent that organizations like
Forbes are producing articles with the help of AI.

6. Enhancing the manufacturing process

The use of robots in manufacturing is well established. But the latest generation of robotic
systems is capable of working alongside humans and interacting seamlessly (and safely) with the
human workforce. This has given rise to the term “cobots" or collaborative robots.

7. Refining recruitment

HR may not seem an obvious match with AI. Yet AI is fast finding many uses in HR processes,
including recruitment. For large employers like Unilever, which recruits around 30,000 people a
year and handles 1.8 million applications, finding ways to streamline and improve the
recruitment process is essential. That’s why Unilever partnered with AI recruitment specialist
Pymetrics to create an online platform capable of conducting initial assessments of candidates in
their own home.

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