How artificial intelligence will affect the future of retailing
Abhijit Guhaa✉, D. Grewalb, P. Kopallec, M. Haenleind, Matthew J. Schneidere, Hyunseok Jungf, Rida E. Moustafag, D. Hegdeh, Gary Hawkinsi
- aUniversity of South Carolina, United States
- bBabson College, United States
- cDartmouth University, United States
- dESCP Business School, France
- eLeBow College of Business, Drexel University, United States
- fSam M. Walton College of Business, University of Arkansas, United States
- gWalmart, United States
- hUniversity of Arkansas, United States
- iIndependent Consultant, United Kingdom
- ✉Corresponding author
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Abstract
Abstract Artificial intelligence (AI) will substantially impact retailing. Building on past research and from interviews with senior managers, we examine how senior retailing managers should think about adopting AI, involving factors such as the extent to which an AI application is customer-facing, the amount of value creation, whether the AI application is online, and extent of ethics concerns. In addition, we highlight that the near-term impact of AI on retailing may not be as pronounced as the popular press might suggest, and also that AI is likely to be more effective if it focuses on augmenting (rather than replacing) managers’ judgments. Finally, while press coverage typically involves customer-facing AI applications, we highlight that a lot of value can be obtained by adopting non-customer-facing applications. Overall, we remain very optimistic as regards the impact of AI on retailing. Finally, we lay out a research agenda and also outline implications for practice.
TL;DRIt is highlighted that the near-term impact of AI on retailing may not be as pronounced as the popular press might suggest, and also that AI is likely to be more effective if it focuses on augmenting (rather than replacing) managers’ judgments. (Semantic Scholar)