Supervisor certificate

This is to certified that Mr. Chirag Gautam has worked for the degree of master of commerce in Business
Administration under my supervision. The work reported in the present research project entitled “THE
SUBSTANTIAL IMPACT OF ARTIFICIAL INTELLIGENCE OVER E-COMMERCE PROGRESS WITH REFERENCE
TO AMAZON ONLINE SHOPPING“ has been done by the candidate himself and has not been submitted
for any other degree or diploma.

Date-

Dr. Naveen Agarwal

Assistant Professor

Faculty of commerce

Kishori Raman (PG) College

Mathura
 Supervisor certificate

This is to certified that Mr. Chirag Gautam has worked for the degree of master of commerce in Business
Administration under my supervision. The work reported in the present research project entitled “THE
SUBSTANTIAL IMPACT OF ARTIFICIAL INTELLIGENCE OVER E-COMMERCE PROGRESS WITH REFERENCE
TO AMAZON ONLINE SHOPPING“ has been done by the candidate himself and has not been submitted
for any other degree or diploma.

Date-

Dr. Naveen Agarwal

Assistant Professor

Faculty of commerce

Kishori Raman (PG) College

Mathura
 LIST OF TABLES
Sl. Table no. Title Page No.
No.
1 4.1 Age of respondents 27

2 4.2 Gender of respondents 28

3 4.3 Employments status 29

4 4.4 Awareness on Amazon’s use of AI 30

5 4.5 Raking based on consumers experience 31

6 4.6 Accuracy of amazons product 33

recommendation
7 4.7 Most used feature of amazon 34

8 4.8 Consumer ranking as per their 36

judgement over Amazon’s application
of Artificial Intelligence
9 4.9 Respondents concern towards the 38
potential privacy implications of
Amazon
10 4.10 Thought on improving Amazon’s use 39
of AI to better serve its customers
11 4.11 Respondents recommending Amazon 40
 CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION

Artificial intelligence has become increasingly popular with the advancement of information
and communication technologies. It combines the field of computer science and substantial
datasets, to facilitate problem-solving. Nowadays, AI is used in nearly every aspect of our
digital lives. It has wide applicability and is presently considered as great tool for improving
the performance of different sectors. No sector of the global economy is resistant to the impact
of artificial intelligence (AI). The advancement of AI technology is transforming how we
interact with the outside world, from VR gaming systems to AI robots in industrial
manufacturing. One of the main industry which makes the most use of artificial intelligence is
the e-commerce industry. AI not only has the ability to carry out jobs that were previously done
manually, but also enhances the customer experience and provides the businesses with the data
which helps them in taking wise business decisions. Artificial intelligence is being used on an
increasing basis by e-commerce firms to enhance their analytical insights, personalize the
customer needs, and boost their competitiveness. It further uses artificial intelligence to create
a strong customer base by understanding the customer needs and doing real time research to
influence behaviour.

Amazon is one of the e-commerce platforms which makes the best use of Artificial Intelligence.
Amazon has always had a competitive edge as an early adopter of artificial intelligence and
one of the first enterprise to structure their business on AI and machine learning. Amazon is
one of the major players in E-commerce, cloud computing and AI. The use of artificial
intelligence has helped Amazon become more efficient, improve customer experience and
increase profitability. As AI technology advances, Amazon can continue to find new and
innovative ways to use AI to improve its operations. This study tries to determine how the
adoption of Artificial Intelligence have resulted in the progress of e-commerce platforms by
specifically focusing on Amazon online shopping. It analyses the role of Artificial Intelligence
in expanding the e-commerce industry with its significant features.
1.2 STATEMENT OF THE PROBLEM

E-commerce has established itself as an essential component of the retail industry as people
prefer making online purchases more frequently. In an effort to meet customer expectations, e-
commerce businesses are utilizing artificial intelligence (AI) to predict consumer behavior and
tailor their purchasing experience. The wide applicability of Artificial Intelligence in e-
commerce sector facilitated rapid growth of different e-commerce platforms along with
creation of huge customer base. Amazon is one among the early adopters of Artificial
Intelligence in the field which helped them in increasing their business efficiency. Amazon
employs AI in numerous of ways to better understand customer search queries and the motives
behind their product searches. In order to make appropriate recommendations to a customer,
an e-commerce company must not only know what the consumer searched for but also why
they are seeking for a product with is gained through the application of Artificial Intelligence.
Thus AI is changing the economic environment in ways that will benefit both the consumers
and business owners in the long run. This considerable role of AI in the progress of e-commerce
platform is the main focus of this study.

1.2 SIGNIFICANCE OF THE STUDY

E-commerce industry is one of the main applicator of Artificial Intelligence by making

effective use of the techniques like product recommendations, visual search, voice search,
chatbot, facial recognition, prediction sales etc. to improve their performance and to create an
extensive consumer base by influencing consumer behavior. The study analyses this drastic
impact of Artificial Intelligence over the significant growth of e-commerce industry by
focusing on Amazon online shopping platform. It helps in understanding the role of Artificial
Intelligence in creating demand for products and in influencing the buying behavior of
consumers. The study also provides an insight on how the application of Artificial Intelligence
provided a better experience for both the consumers and the industry. In general, the research
helps in identifying the effectiveness of implementing artificial intelligence in the e-commerce
industry
1.3 SCOPE OF THE STUDY

The study is conducted to identify the contribution of Artificial Intelligence towards the
development of e-commerce industry. This was analyzed through collecting information from
consumers who use Amazon online shopping platform to purchase products. The geographical
scope of the study is confined to Ernakulam district. It helps in understanding the view of
consumers towards the application of Artificial Intelligence in the e-commerce platform with
special reference to Amazon online shopping platform. The study analyses how Artificial
Intelligence influences the buying behavior of the consumers and attract them towards the
platform in a unique way. It helps in understanding how the consumers and the company makes
advantage of artificial intelligence for creating a better shopping experience.

1.4 OBJECTIVES

1. To look over the personalized marketing role of Artificial Intelligence in Amazon.

2. To study the impact of Artificial Intelligence over buying behavior.

3. To identify the most used feature of Amazon.

4. To analyses the role of Artificial Intelligence in creating demand for products.

1.5 RESEARCH DESIGN

1.5.1 Type of Research

This research is descriptive and analytical in nature. Descriptive research is used to describe
the characteristics of a population or phenomenon being studied, whereas analytical research
is used to test the hypothesis of the study.

1.5.1.a Primary data

Questionnaires in the form of google forms will be used to collect primary data from
the consumers who encounters the application of Artificial Intelligence while shopping
online. The target respondents include consumers who have used Amazon online
shopping platform for their purchase. The primary data for the study is collected
through a structured questionnaire focusing on the application of Artificial Intelligence
in Amazon online shopping.
 1.5.1.b Secondary data

The data was collected from books, journals, websites, and other sources.

1.5.2 Population and sample size

The target population for the study is confined to Ernakulam district. The target respondents
include different segments of age, qualification, occupation, and income level, who are makes
use of Amazon online shopping platform for their purchases.

1.5.3 Sampling method

Convenience random sampling will be used for surveying the organization. The advantage of
this type of sampling is the availability or quickness with which data can be gathered.

1.5.4 Tools for data collection

Google forms was used to collect data from the respondents.

1.5.5 Statistical Tools for analysis

The data has been analyzed using Pie charts as well as Bar diagrams.

1.6 Limitations of the study:

1. The responses of the sample population could be biased as they might not share their genuine
opinion.

2. Some of the respondents were not aware of the concept of Artificial Intelligence and its
applicability in Amazon online shopping platforms.

3. The sample collected from only one region and thus might not reflect the overall perception
of consumers as a whole.

4. Collecting information from consumers was time consuming.

5. The attitude of people towards technology can change from time to time which effects the
accuracy of the study.
CHAPTERISATION SCHEME

The study is organized into 5 chapters are as follows: -

Chapter 1 - Introduction

Chapter 2 - Review of literature

Chapter 3 - Theoretical framework

Chapter 4 - Data analysis and interpretation

Chapter 5 - Findings, suggestions and conclusion

Bibliography

Appendix
Review of literature

Ibharim Halil (2023) carried out research on “Artificial Intelligence Marketing: The Effect
of Artificial Intelligence on Purchasing Intent in Online Shopping”. Artificial intelligence is
used in marketing to make predictions about future customer behaviour based on historical
customer data. Businesses can save money and gain greatly from this technology. Unlike past
studies, the study examined artificial intelligence marketing by taking into account the
psychological and behavioural characteristics of consumers. From the viewpoint of rational
action theory, this study investigates the influences of subjective norms, attitudes, hedonic
values, and perceived utility values of consumers buying from artificial intelligence websites
on purchase intention. Research results have shown that artificial intelligence can be a useful
tool in online shopping sites. Finally, in the study, the extent to which the use of artificial
intelligence affects purchase intention has been explained and contributed to by researchers,
literature, and businesses.

Aprit Sharma (2023) did a research on “Analyzing the Role of Artificial Intelligence in
Predicting Customer Behavior and Personalizing the Shopping Experience in Ecommerce”.
With consumers increasingly favoring online purchasing, e-commerce has established itself
as a vital component of the retail sector. Artificial intelligence (AI) is being used by e-
commerce companies to anticipate client behavior and customize the buying experience in an
effort to match customer expectations. The purpose of this research paper is to examine how
AI affects e-commerce customer behavior prediction and personalization. The study starts
with a thorough literature analysis that looks at the present state of understanding on
consumer behavior, personalization strategies, and the various types of AI employed in e-
commerce. We offer a thorough overview of this significant and quickly developing field of
AI in e-commerce by evaluating the literature and examining pertinent case examples. The
study discover that artificial intelligence has the ability to dramatically boost the precision of
anticipating consumer behavior and to raise conversion rates through tailored
recommendations. However, the ethical and privacy aspects of employing AI in e-commerce
must be carefully studied, and it must be utilized responsibly and transparently.
Prof. Yan lee, Mahabubur Rahman Miraj and Md Sazibur Rahman (2022) conducted a
study on the title “Artificial Intelligence for energizing e-commerce “. Artificial intelligence
plays an undeniable role in every sector in the present world. The study deals with the
analysis of application of artificial intelligence in e-commerce and how it has created an
impact on energizing e-commerce industry. It further analysed the negative and positive
aspects of artificial intelligence in the industry. The study concluded on how e-commerce is
still not flawless with the application of artificial intelligence even though it had created a
huge progress in e-commerce. It further suggests to understand the challenges and
opportunities of Artificial Intelligence to overcome current and future problems.

Halima Afroz, Kuhu Vaishnava, Manu K S (2022), did a research on “Artificial

Intelligence in E-commerce: Applications, Implications and Challenges” The development of
intelligent computers capable of doing activities that would ordinarily need human
intelligence is the focus of the broad field of artificial intelligence (AI) in computer science.
Three cognitive processes—learning, reasoning, and self-correction—are the main topics of
AI programming. Artificial intelligence is being widely used by e-commerce companies to
better understand their clients and fulfil their expectations. By the analysis of research
publications from multiple sources, this paper primarily seeks to identify some important uses
of AI in e-commerce. The study found that AI has a significant impact on enhancing the
effectiveness of e-commerce businesses, and these businesses are investing more and more in
the future to support the expansion and development of their businesses in recent years.

DR. ANIL KUMAR KASHYAP, ITY SAHU, DR. AJAY KUMAR3 (2022) conducted
research titled “ARTIFICIAL INTELLIGENCE AND ITS APPLICATIONS IN E-
COMMERCE - A REVIEW ANALYSIS AND RESEARCH AGENDA” This study has been
directed to present a holistic view of AI technology in e- commerce. Study highlights AI and
its subsets, e-commerce and application of AI in different e commerce operations. The study
comprised dual aspects of the field. Firstly, the technologies incorporated in the field and
secondly, the utility of these technologies in e- commerce. The findings of the study indicate
that the AI has more to offer in e-commerce. To sum up the literature reviewed here
highlights that e-commerce can enhance its offering by embedding artificial intelligence.
Luísa Vitorino, Edirlei Soares (2022), did a study on “An Evaluation of Artificial
Intelligence Components in E-Commerce Fashion Platforms”. The potential for success in
every area we are aware of today has been boosted by technological innovation and the
democratization of artificial intelligence (AI), and more is still to come. The study analyses
how artificial intelligence (AI) advancements in the fashion industry, especially in e-
commerce fashion brand platforms, are influencing the personal lives of consumers,
particularly the decision-making of young (Gen-Z) consumers. AI-driven touchpoints
influence and enrich each stage of the decision-making process, whether more positively or
negatively, allowing businesses to not only improve their supply and customer demand but
also to offer a shopping experience that goes beyond the mechanical "select and buy."

Ransome Bawack, Samuel Fosso Wamba, Kevin Daniel, Shahriar Akter (2022) did a
research on the title “Artificial intelligence in E-Commerce: a bibliometric study and
literature review”. The study on artificial intelligence (AI) in e-commerce is summarized in
this paper, and it also makes recommendations for how information systems (IS) research
might contribute to this research stream. In order to achieve this, the novel strategy of
combining bibliometric analysis with a thorough literature study was employed. 4335
documents' bibliometric data were examined, and 229 articles from prestigious IS journals
were evaluated. According to the results of the bibliometric study, recommender systems are
the main subject of research on AI in e-commerce. As the primary research topics, sentiment
analysis, trust, personalization, and optimization were determined. Additionally, it identifies
Chinese schools as pioneers in this field of study. Additionally, computer science, AI,
business, and management journals published the majority of study papers on AI in e-
commerce. The literature review identifies the primary study themes and approaches.

Atul Nimbalkar(2022) conducted a research on “The Increasing Importance of AI

Application in E-Commerce”. Building intelligent machines capable of carrying out activities
that typically require human intelligence is the focus of artificial intelligence (AI), a broad
area of computer science. Online merchants employ artificial intelligence in the e-commerce
sector in addition to product recommendations to offer Chabot services, analyses user
reviews, and offer tailored services to online customers. The study deals with the usage of
catboats or virtual assistants, intelligent product suggestions, personalisation, and inventory
management which are the main applications of AI in e-commerce. In conclusion, retailers
are making significant investments in technology to stay competitive and relevant. AI has
multiple significant applications in e-commerce.

Hasan Beyar and Hatem Garamoun (2022) conducted a study on “The Effect of Artificial
Intelligence on End-User Online Purchasing Decisions Toward an Integrated Conceptual
Framework”. This study looked into how particular artificial intelligence tools and factors
affected end-user purchasing intentions for practical and shopping-related items among Saudi
Arabian consumers. The element that the researcher attempted to directly link to the online
purchase intention variable was the consideration set. The machine learning, purchase
duration, social product suggestion, and social media reliance were the chosen AI tools and
methodologies. These four were used as the indirect factors since the consideration set
variable was used to assess their impact. The unified theory of acceptance and use of
technology (UTAUT) and the theory of reasoned action made up the theoretical framework
that guided this study. The researchers chose to use the structural equation modelling (SEM)
method to analyze their findings. The results showed evidence of correlation with a set of
three independent variables under examination, namely purchase length, machine learning,
and product recommendation. The study also showed that end-user purchase decisions for
online clients are influenced by customer consideration sets.

Manasa R, Jayanthila Devi (2022), conducted a case study on “Amazon's Artificial

Intelligence in Retail Novelty - Case Study”. The main goal of research and development in
artificial intelligence is to provide a means for making deliberate decisions. Giving computers
the ability to do intellectual tasks like decision-making, problem-solving, environment
perception, and communication understanding is the main objective of artificial intelligence
(AI). Amazon is well known for deploying robots in their distribution centers; there are about
30,000 of them. The corporation now has a mechanical autonomous organization, enabling
the robots to work on their own. The study analyzed that a company may benefit from
artificial intelligence (AI) in three key areas: the automation of business processes, the
discovery of new information through data analysis, and the engagement with customers and
employees. AI will liberate people to concentrate on the 20% of non-routine jobs that
currently exist.
Andreea Tamaduianu (2022) carried out a study on "Artificial intelligence at the service of
e-commerce”. E-commerce, which is a technology-based business, has many applications for
AI. In order to show the impact of AI as a technological phenomenon in e-commerce, this
study will provide a thorough definition of artificial intelligence, along with details regarding
its three stages, and will discuss various applications of AI in the e-commerce processes, such
as market research, market stimulation, inventory management, picking orders and
prioritizing them, delivery, customer support services, and ways to attract more customers.
This article will also discuss some of the difficulties businesses have integrating artificial
intelligence into their operations and possible future directions for this area of study.

Gangzhi Guo (2021) did research on “Application of artificial intelligence technology in the
field of live streaming e-commerce “Today, the network as a new form of social interaction is
gradually altering how people live their lives. With the emergence of mobile Internet
platforms for social networking and technical support, live electrical business has gradually
emerged as the hottest method of online shopping. Whether it takes place on a traditional
shopping platform or a popular short video platform, live streaming e-commerce has entered
a phase of untamed expansion. Artificial intelligence technology offers strong technical
support for the growth of live streaming e-commerce with its technical benefits. Starting with
the idea of artificial intelligence technology and live streaming e-commerce, the paper
concentrates on the use of artificial intelligence technology in the field of live streaming e-
commerce.

Gururaj P (2021) conducted a research titled "Artificial intelligence - application in the field
of e-commerce" Modern society is heavily reliant on artificial intelligence. Although this idea
has been around for a while, advancements in the field of artificial intelligence have
continued since the concept's inception. Intelligent system development is making human job
more convenient, time- and effort-efficient, and easier. The paper focuses on studying and
discussing in detail from the perspectives of Artificial Intelligence Assistant (chatbot),
Intelligent Logistics, Recommendation Engine, Warehouse Automation, Visual Search, and
Optimal Pricing Application through the research of e-commerce Intelligent Operation. This
paper simply describes the current state of e-commerce development and AI technology
prospects, analyses the current state of AI technology application in the field of e-commerce.
Amber Srivastava (2021) carried out a study on “The Application & Impact of Artificial
Intelligence (AI) on E-Commerce” The world is currently experiencing the most advanced
technologies due to AI. The E-commerce sector has also changed how businesses operate in
India. The use of AI in the e-commerce sector has significantly increased during the past ten
years. AI is being used by the e-commerce sector to process a sizable database of forward-
thinking clients, engage with them via Chabot’s, and assist with searching, sorting, and
selecting the right product. Competitors in the e-commerce industry are utilizing AI to
improve consumer recommendations, develop a more effective sales process, establish a
customer-centric search, combat fraudulent reviews, etc. The proposed study will provide
insight into how artificial intelligence is being used in the online retail sector and how it
affects online shopping portals.

Harikumar Pallathadka, Edwin Ramierz, Karthikeyan Kaliyeperumal (2021) conducted

research on “Applications of artificial intelligence in business management, e-commerce and
finance”. With the main objective of designing standard, dependable product quality control
methods and the search for new ways to reach and serve customers while maintaining low
cost, AI has been implemented in the financial and e-commerce industries to achieve better
customer experience, efficient supply chain management, improved operational efficiency,
and reduced mate size. One of the most widely used AI techniques is machine learning,
specifically deep learning. These models are used by people, companies, and government
organizations to foresee needs and gain knowledge from information. There is currently work
being done on developing machine learning models for the complexity and variety of data
found in the food business. Applications of artificial intelligence and machine learning to
business administration, finance, and online shopping are covered in this study.

Prateek Kalia (2021) in his book “Artificial Intelligence: Fundamentals and Applications”
mentioned the way that businesses handle their marketing, discovery, transaction processing,
and product and customer service procedures has changed as a result of new internet-based
technologies. Artificial intelligence (AI) is a major technology that has partially or entirely
replaced humans in the performance of tasks. The uses of AI in a technology-driven sector
like e-commerce are countless. The book went over the role of AI in e-commerce business
processes like market research, market stimulation, terms negotiation, order selection and
priority, order receipt, order billing/payment management, order scheduling/fulfillment
delivery, and customer service and support in order to explain the impact of AI as a
technological phenomenon on the companies involved in e-commerce. The study concluded
on how the applications of AI changed the face of business.

Laith T Khrais (2020) conducted a study on “Role of Artificial Intelligence in Shaping

Consumer Demand in E-Commerce”. The use of artificial intelligence (AI) has emerged as a
crucially new tool for product personalization and customization to satisfy particular needs.
Although AI systems have a significant impact on e-commerce, this research reveals that
there is debate about whether they are ethically sound, particularly when it comes to the
explainability idea. To get a thorough knowledge of the concept of explainability as it has
been applied by scholars in the area of AI, the study employed the usage of word cloud
analysis, voyance analysis, and concordance analysis. This study is driven by a corpus
analysis, laying the framework for a consistent front and advancing the development of
Explainable Artificial Intelligence (XAI) models. According to this study, ML models need
be enhanced to make them more interpretable in order to deploy explainable XAI systems.

Hedia Jegham, Ines Belgacem (2020) carried out a study titled “Revolution of Artificial
Intelligence on E-Commerce”. Several Artificial Intelligence implementations are concerned
with the entire e-commerce supply chain, from production and storage to marketing,
distribution, and delivery up to after-sale service. This chapter focuses on the theoretical and
technical foundations of specific AI approaches used to create chatbots and recommender
systems, such as artificial neural networks and natural language processing. Based on success
criteria, four significant Middle Eastern e-commerce websites were chosen for this study's
purposes in order to demonstrate how artificial intelligence is transforming the e-commerce
sector. The objective is to encourage submissions on how AI paves the way for e-commerce
sites to become more appealing and profitable in the industries of the MENA region.

Xia Song, Shiqi Yang, Ziqing Huang, Tao Huang (2019) carried out a study on the title”
The Application of Artificial Intelligence in Electronic Commerce”. Artificial intelligence
(AI) applications are becoming increasingly widespread due to the rapid advancement of
science, technology, and economic civilization. The development of AI has a significant
impact on our way of life and way of working. AI technology has also been effectively
deployed and produced positive outcomes in the e-commerce sector. This paper analyses the
current state of the application of AI technology in the field of e-commerce, focusing
primarily on study and discuss in detail from the aspect of assistant of AI, intelligent logistics,
recommendation engine, and the optimal pricing application through the research of e-
commerce intelligent operation.

R.Vignesh, Dr.S Vasantha (2019) conducted a study on “Significant Developments of

Artificial Intelligence In Indian Ecommerce Industry In 2019”. Since the beginning of the last
decade, the Indian e-commerce market has been expanding, and by 2034, it is anticipated to
overtake the US market to become the second-largest e-commerce market in the world. The
ability of artificial intelligence to scale up the global e-commerce industry has greatly
improved. The past few years have seen the beginning of the benefits of the decades' worth of
investment in artificial intelligence research and development. The majority of businesses
have been struggling with the recent economic slump, but the e-commerce sector has been
steady because of reliable Supply and Demand predictions made using AI ideas. The article
provides a detailed explanation of the most current advancements in artificial intelligence in
the e-commerce sector in 2019.
 CHAPTER 3
THEORITICAL FRAMEWORK
E-COMMERCE

Electronic commerce, or e-commerce, is the exchange of products and services, or the

transfer of money or data by means of an electronic network, mainly the internet. It includes a
wide range of information, programmes, and resources for online purchasers and sellers, such
as mobile shopping and encryption for online payments. These are usually carried out as
Business-to-Business (as represented by websites like Shopify), Business-to-Consumer (as
represented by websites like Amazon), Consumer-to-Consumer (as represented by websites
like eBay) and Customer-to-Business (as Google AdSense). Over the past two decades, e-
commerce has grown exponentially, revolutionizing the way people shop and conduct
business. E-commerce can be traced back to the 1960s, when businesses began to use
Electronic Data Interchange (EDI) to share business documents like purchase orders and
invoices with each other. In the 1990s, the advent of the World Wide Web made it possible for
businesses to sell their products directly to consumers, and e-commerce as we know it today
began to take shape. Since then, e-commerce has grown to become a multi-trillion-dollar
industry, with giants like Amazon, Alibaba, and eBay dominating the space. A single website
or a variety of online channels, including social media and email, can be used to operate an
online store. Customer support representative, shipping clerks, packing agents, software
developers, general operation managers and delivery drivers are considered as e-commerce
workers. One-way people buy and sell goods in the retail sector is through e-commerce.
While some businesses simply sell things online, others incorporate it within a larger
marketing plan that also includes physical stores and other avenues of distribution. In either
case, e-commerce enables start-ups, small enterprises, and established firms to sell things
widely and connect with people everywhere.

A firm that makes revenue by selling goods or services online is known as an ecommerce
business. An e-commerce business might, for instance, offer web design services, clothing,
software, or housewares. Ecommerce links buyers and sellers using variety of electronic
means. One need a channel, like a website or social media, for instance, so that buyers can
find products and services to buy. E-commerce can take on a number of different forms,
encompassing various corporate and consumer transactional relationships as well as the
exchange of a variety of goods. It includes

 Retail: which includes the direct sale of a product by a company to a customer without
the use of a middleman.
 Wholesale: The sale of goods in large quantities, frequently to a retailer who
subsequently offers them to customers directly.
 Drop shipping: which is the practice of selling goods that have been produced and
delivered to customers by different companies.
 Crowdfunding: The process of collecting funds from customers before a product is
really available in order to raise the startup money required to bring it to market.
 Physical goods: Any tangible items that must be physically transported to clients as
orders are filled and inventories are refilled.
 Subscription: an automated, ongoing purchase of a good or service up until the
subscriber decides to discontinue.

Mobile commerce, also referred to as "m-commerce," is the act of carrying out online
transactions through a mobile device such as smartphones and tablets. This includes mobile
shopping, banking and payments. Mobile chatbot make online shopping easier and allow
consumers to complete transactions via voice or text chats. Given the prevalence of mobile
devices among customers globally, it makes sense that m-commerce will represent over 43%
of all retail e-commerce sales in 2023 (an increase of about 2% from 2022).

E-commerce comes in as many different forms as there are different ways to shop online.
Some of the more common business models shaping the world of e-commerce include:

 Business-to-business (B2B): - where electronic exchange of products, services or

information are carried out between businesses, rather than between businesses and
consumers.
 Business-to-consumer (B2C) is where the businesses sell products, services or
information directly to consumers.
 Consumer-to-consumer (C2C) is a type of electronic commerce where consumers
exchange products, services and information online. These transactions are usually
conducted through a third party that provides an online platform for transactions.
 Consumer-to-business (C2B) is a type of e-commerce where consumers offer their
products and services online for businesses to bid on and buy.
 Business-to-administration (B2A) refers to online transactions between businesses and
public administrations or government agencies. Many branches of government depend
on various electronic services or products. These products and services often relate to
legal documents, records, social security, tax information and employment. B2A
services have grown significantly in recent years due to investments in e-commerce.
 Consumer-to-administration (C2A) refers to online transactions between consumers
and public administrations or government agencies. The government rarely buys goods
or services from private individuals, but individuals often use electronic resources in
areas such as social security, heath and taxes.
Advantages of E-commerce:

E-commerce offers many advantages to both consumers and businesses. For consumers, e-
commerce provides convenience, as they can shop from the comfort of their own homes,
without having to physically visit a store. E-commerce also allows consumers to compare
prices and product features across different vendors, making it easier for them to find the best
deals. For businesses, e-commerce provides access to a global customer base, enabling them
to reach customers who may not have been accessible through traditional brick-and-mortar
stores. E-commerce also allows businesses to reduce overhead costs, as they don't need to
maintain physical stores or pay for sales staff. Some of the significant benefits of ecommerce
are:

 Rapid growth
 Offers global marketing reach
 Provides the ease of ordering products online
 Availability
 Generally, involves lower operating costs
 Gives direct-to-consumer access.
Challenges of E-commerce

 Limited face-to-face interaction: The quarries of the customers in retail stores can be
clarified by the salesperson, cashier or store manager while it is difficult to solve
customer quarries in e-commerce as the website may only offer support at certain times,
and its online service options may be difficult to navigate or may not be able to answer
a certain question.
 Technical difficulties: Technological challenges can negatively impact sales. Just as
hiccups in the supply chain can prevent products from being delivered on time, internet
or hard drive problems can cost you time and money.
 Data security: Skilled hackers can create genuine-looking websites that claim to sell
well-known products and sends customers fake or counterfeit products or simply steals
credit card information. Legitimate e-commerce sites also carry risks, especially when
customers store their credit card information which could be stolen by the actors in the
threat. A data breach can also damage a retailer's reputation.
 Challenges of shipping and fulfilling orders at scale.
ARTIFICIAL INTELLIGENCE (AI)

Artificial intelligence is the performance of human-required tasks by machines and

technologies. Artificial intelligence uses computers and machines to mimic the problem-
solving and decision-making abilities of the human mind. This includes the application in
many sectors like education, healthcare, Science, technologies etc. by means of robotics,
computers, gaming and many more. AI have developed through the continuous advancement
in the field of science and technology, in which computers contributes a major role. The
growing needs and wants of humans have paved the way for artificial intelligence. Now
Artificial Intelligence is the advanced version of technologies with utmost accuracy. In future,
there may or may not be a replacement for this.

Machine learning and deep learning are used to build Artificial Intelligence, which enables
algorithms to comprehend trends, behaviour, and patterns and make predictions based on the
data. It primarily concentrates on the data and patterns, where each data point produces a
distinct result. Every profession can benefit from AI since it makes tasks simpler and more
accurate. Doctors can use it to prescribe the best medications, organise the course of
treatment, and choose the best diagnostic equipment. An industry can achieve everything with
AI's assistance. Healthcare, finance, manufacturing, transportation, retail, education,
entertainment, and many other sectors can all benefit from the application of Artificial
Intelligence.
Artificial Intelligence can be classified as weak AI and strong AI. Weak AI is also called
Narrow AI or Artificial Narrow Intelligence (ANI). Most of the Artificial Intelligence we use
today is weak AI. It is trained to focus on performing specific tasks. It enables some of the
very powerful applications like Amazon Alexa, Apple’s Siri etc. Strong AI consists of
Artificial General Intelligence (AGI) and Artificial Super Intelligence (ASI). Artificial
General intelligence is a theoretical form of artificial intelligence where machines have the
same intelligence as humans which makes it capable of solving problems, learning and
planning for the future through self-aware consciousness. Artificial Super intelligence (ASI),
also known as superintelligence, would exceed the intelligence and capabilities of the human
brain. Although strong AI is still entirely theoretical, with no practical examples, this does not
mean that AI researchers are not also studying its development. Recently, Artificial
Intelligence is under a massive growth with the intervention of large language models such as
ChatGPT. This resulted in enormous change in AI performance and its potential to drive
business value.

Artificial Intelligence is primarily used in retail or e-commerce platforms to identify

consumer buying trends and patterns to recommend products based on their preferences. It
plays an inevitable role in improving better customer experiences and bringing innovative
solutions in the e-commerce industry. According to reports, the number of businesses which
adopts AI increased by 270%. Artificial intelligence is thus constantly changing the
electronics industry. It affects how an online store offers and sells products to its customers.
By providing a highly personalized shopping experience through virtual shopping assistants,
AI improves the online shopping experience for customers and retailers. This technology
advancement offers certain ways to identify customer behaviour and analyse big data to help
online stores engage, segment and retarget customers. Consumers will receive
recommendations based on their most recent searches, purchases, and preferred price range.
The success of e-commerce business depends on the efficiency of personalised customer
experience. Using Artificial Intelligence, everything can be filtered, including the preferred
brand, colour, and more. AI applications can identify and analyse consumer data to predict
future purchasing patterns and make product recommendations based on consumer browsing
habits. The algorithms used for this purpose is created by Artificial Intelligence using the data
set made from our prior searches and purchases. Retail businesses make informed decisions
using this information to more effectively predict future outcomes and adjust marketing
campaigns accordingly. Artificial intelligence is thus useful for today's online retailers to
provide the best customer and user experience in e-commerce and make smart business
decisions using customer data.

Artificial intelligence in supply chains can provide the powerful optimization capability
needed for more accurate capacity planning, better demand forecasting, improved
productivity, lower supply chain costs and higher output, while promoting safer working
conditions. AI thus helps in improving supply chain management and the consumer
experience. In today's digitally connected world, maximizing productivity while reducing
uncertainty is a top priority for all industries. In addition, increasing expectations for
supersonic speeds and operational efficiency further emphasize the need to leverage the
capabilities of artificial intelligence (AI) in supply chains and logistics. The pandemic and
subsequent disruptions have shown the dramatic impact of uncertainty on supply chains and
the need for smart contingency plans to help businesses manage this uncertainty in the right
way. This was facilitated with the implementation of Artificial Intelligence in supply chain
and logistics. Artificial intelligence can be implemented for better inventory management
which facilitate proper flow of items in and out of the warehouse. This can help prevent
overstocking, understocking, and unexpected inventory depletion. However, the inventory
management process involves a number of inventory-related variables (order processing,
picking, and packing) that can make the process both time-consuming and highly error-prone.
This is where AI-based supply chain planning tools with the ability to process big data can
prove to be very effective. These intelligent systems can quickly analyse and interpret huge
data sets and provide timely guidance to forecast demand and supply. Some AI systems are so
advanced that they can even predict and discover new spending patterns and predict seasonal
demand. This level of AI application helps predict future customer demand trends and
minimize the cost of carrying unwanted inventory.
Even though AI is found to be a boom in society, it has many negative sides too. The biggest
and most obvious disadvantage of using artificial intelligence is its high development cost.
The price varies depending on what you need the AI to achieve. Once AI is fully installed and
helps improve workflow, the cost will eventually be recouped. However, the initial costs can
be daunting, if not overwhelming. We can observe that AI is slowly replacing human skills.
In such a way there is a high probability of increasing unemployment worldwide Yet AI's
inability to make decisions using emotions and creativity becomes its next drawback. Due to
its lack of creativity, AI cannot provide unique solutions to problems or excel in any highly
artistic profession. AI can be programmed to produce "new" thoughts, but not truly original
thoughts at this stage of development. People are better equipped to provide a solution when
a company is looking for a unique or imaginative solution to a problem. Another serious
problem is about safety and security. As a result of the rapid development and application of
technology, many ethical concerns have arisen in relation to the use and further development
of artificial intelligence. Concerns about the protection of consumer data are among the most
cited ethical concerns. Data sustainability presents many challenges to the informed consent
of data owners. AI can also gather information about people without direct access to their
personal data, as it is excellent at spotting trends Since there is a high vulnerability of attack,
which gives high further negative consequences. This creates a need to properly handle the
implementation of Artificial Intelligence.
Artificial intelligence has enormous potential to create a better place to live. Ensuring that
artificial intelligence is not overused is critical to the future of humanity. Therefore,
understanding the advantages and disadvantages of AI is a key issue for developers and
businesses. AI has already brought benefits both large and small in recent decades, and
exciting innovations and discoveries can be expected as computing advances. These
sophisticated machines made business more efficient and daily life a little more convenient.
From Alexa to big data warehouses and industry-leading speech recognition technology, AI
applications are likely to improve over time. Artificial intelligence technology also has some
disadvantages that researchers and experts must consider when developing new applications.

Amazon

Amazon is a multinational technological company which was founded by Jeff Bezos from his
garage on 5th July 1994. Initially it was just an online platform where we could sell books.
Later in 1998 it started to sell music and videos. Afterwards they expanded their business to
United Kingdom and Canada. Sooner they started to sell consumer electronics, home
improvement items, games, and toys. After the starting of 21st century they stepped into
providing APIs to web developers to build web applications through Amazon Web Services
(AWS) in order to provide cloud space, storage and computing power. It also flourished into
Alexa web information services. In 2006 amazon allowed other small business or individuals
(3rd party members) to sell products through their platform. In 2017 they acquired Whole
food market. About 2.14 billion people worldwide buy goods and services online, and the
number of Prime members who shop at Amazon stores now exceeds 200 million.
Logistics and distribution are always amazon’s strength and that is one of the major reasons
for their successful run. The company has lot of distribution hubs and maintains a good
channel of connection to the customers. The company gives high preference to consumer
values and give importance to faster shipping and they also use AI technology, robots and
drones in order to make their operations more effective.

Amazon is one of the major players in E-commerce, cloud computing and AI. The future
seems quite bright to them as they have all the advanced technologies. Amazon have many
products and services Retail goods, Amazon prime, Kindle, Amazon Pay, Amazon game
studio, Alexa, Amazon Drive etc.

Amazon Online store is their most important business and they started it by selling books
through it and later they expanded it. Now amazon sells more than 12 million products.
Amazon have its own products and it also allows 3rd party producers to sell their product
through this platform. To purchase through Amazon platform first we need to start an amazon
account through mail id or mobile number. Afterwards we could search the products which
we need and we will get the products from different brands and price ranges and we can
select from it. We could filter the product category or price which we need to get, so that we
could sort out products easily and conveniently. Amazon’s online store made shopping easier
for everyone by purchasing everything in one click with great offers and price. The
experience offered by amazon was really new to the consumers. During the lockdown
amazon’s business increased rapidly and online retail stores market was so high. Users can
easily browse and buy things on Amazon's online store because to its user-friendly layout.
Customers can conduct product searches by brand, category, price range, or particular
keywords. Users may make informed selections about what to buy thanks to the website's
product information, reviews, and ratings.

The Prime membership programme is one of the most well-liked aspects of Amazon's online
business. Members have access to streaming services like Amazon Prime Video, music, and
special offers, as well as free two-day shipping on qualifying products. In some places, same-
day and one-day shipping alternatives are also available to Prime members. The vast majority
of Amazon's third-party vendors use the website to market their goods. Customers now have
access to a large variety of goods, including uncommon and difficult-to-find things.
Additionally, Amazon's marketplace platform gives sellers the freedom to determine their
own prices, fostering a market with competitive pricing that is advantageous to consumers.
The business is known for providing some of the best discounts on the internet. Amazon
attracts customers from all over the world with its substantial discounts on a variety of
products during big shopping holidays like Black Friday and End of season sales.

Along with its online store, Amazon has entered other e-commerce markets. These include
Amazon Fresh, which delivers groceries, and Amazon Go, a network of cashier less
convenience stores. The business has also entered the entertainment sector by launching
Amazon Studios, where it produces and streams its own unique content.

Algorithms for machine learning and artificial intelligence are used to power Amazon's
online business. These technologies allow the business to provide clients personalised
suggestions based on their browsing and purchasing history. This feature makes shopping
more individualised while also assisting clients in finding things they are interested in.
Overall, the way people shop has been revolutionised by Amazon's online store. It has grown
to be one of the most well-liked e-commerce platforms in the world thanks to its broad
product range, affordable prices, and top-notch customer service.

AI application in Amazon
Amazon is one of the largest technology corporations in the world. It primarily emphasises
the operational aspect. Amazon is well known for its operations and supply chain. In order to
function significantly better and more easily, it has also integrated AI into its operating
system. For the purpose of enhancing customer service and other processes, the corporation
has invested in AI technologies like machine learning.

Amazon builds much of its business on systems based on machine learning. Without ML,
Amazon would not be able to grow its business, improve customer experience and selection,
or optimize the speed and quality of logistics. Amazon launched AWS to allow other
companies to enjoy the same IT infrastructure with flexibility and cost advantage, and now it
continues to democratize ML technologies into the hands of every business. The structure of
Amazon's development teams and their focus on ML to solve complex, pragmatic business
problems lead Amazon.com and AWS to develop easy-to-use and powerful ML tools and
services. These tools are first tested in Amazon's scale and mission-critical environment
before being released as AWS services that any business can use like any other IT service.
Amazon primarily employs AI in its product recommendation feature, which suggests
products to customers based on their search and browsing history and other factors. When
recommending a product to a customer, an algorithm takes into account search searches,
purchase history, and user reviews. The use of algorithms to propose products accounts for
35% of Amazon's revenue. So, AI plays a major role in the success of amazon and its revenue
generation. The application of Artificial Intelligence in Amazon can briefed as the following:

 Personalised Recommendations: Amazon’s personalised product recommendations is

one of the well-known way in which amazon uses Artificial intelligence. By effectively
anticipating customer demands through personalized product recommendations,
Amazon can maintain customer satisfaction while gaining greater market share.
Customers are shown a list of suggested products when they visit the Amazon website
or app based on their prior purchases and browsing behaviour. These suggestions are
produced by machine learning algorithms and services that examine client data to find
patterns and trends. Amazon uses inter-entity collaborative filtering to make this feature
work.
 Supply Chain Optimization: Millions of products are sent to clients worldwide by
Amazon through its extensive and sophisticated supply chain. Amazon employs AI to
optimise its supply chain in a number of ways to manage this process effectively. This
 entails predicting product demand, maximising stock levels, and sending orders to the
most effective fulfilment facilities. In order to predict which products will be popular
in the future and to modify its inventory levels accordingly, Amazon, for instance,
employs AI and ML. This facilitates waste reduction and guarantees that consumers
receive their products on schedule.
 Voice-enabled shopping experience through Alexa: Amazon claims that their voice
assistant, Alexa, enables customers to browse products, make purchases, and manage
the checkout process without needing to click or touch a screen. This allows users to
conduct their checkout procedure without needing to use their hands. This AI
application aims to make Amazon shopping more convenient for users and provide its
customers with an offline shopping experience by enabling users to create shopping
lists and get Alexa recommendations.
 Fraud Detection: Amazon is vulnerable to fraud because its platform processes millions
of transactions every day. Amazon employs AI for detecting and preventing
questionable account activity, identifying and eliminating fraudulent listings, and
protecting both its customers' and its own interests. For instance, the AI system might
alert suspicious behaviour if a customer's account is accessed from a different location
and demand identity verification before enabling them to make a purchase.
 Customer Service: Alexa, Amazon's virtual assistant, employs artificial intelligence to
give customers prompt and precise responses to their inquiries. Alexa may be used to
place orders, answer queries about items, and provide information about the weather,
traffic, and other things. It is integrated into a number of Amazon products, including
the Echo smart speaker. Amazon is able to relieve the workload on its human customer
support personnel and offer customers a more effective and pleasant experience by
employing AI to handle customer service issues.
 Image and Video Analysis: Amazon uses AI to analyse images and videos to improve
the accuracy of product recommendations and to identify and remove inappropriate or
offensive content from our platform. For example, if a customer uploads a photo of a
product they are interested in purchasing, an AI system could analyse the photo to
identify the product and suggest similar products that the customer might be interested
in. Similarly, when a customer uploads a video, if it contains inappropriate or offensive
content, the AI system may flag that video for review by a human moderator.
  Predictive Maintenance: To keep our fulfilment centres running smoothly, Amazon
uses predictive analytics to predict when equipment is likely to fail. By analysing data
from sensors and other sources, AI systems can identify patterns that indicate early
equipment failure. This allows maintenance to be planned before problems occur,
reducing downtime and increasing efficiency.

The use of artificial intelligence has helped Amazon become more efficient, improve
customer experience and increase profitability. As AI technology advances, Amazon can
continue to find new and innovative ways to use AI to improve its operations. With the use of
AI, Amazon intends to use drones to transport items in the future. Amazon uses AI heavily for
its use and proper function. But AI uses lot of personnel data and other data in order to
predict as per the algorithm so it may also have issues related to safety and privacy. There
will be high chance of information leakage so they need to properly maintain and kept safe.
Storage of data and privacy is one of the main issues faced by most of the companies. There
will be large data available and the chance of it being misused is really high. Through
including AI to customer services or operation the aim is to improve the functionality but
privacy is also important. Companies try their maximum to safe keep their data. So with
proper maintenance of data, AI can be used to good cause and can improve the efficiency of
the firm.
 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
 Table 4.1 shows the age of respondents

Age Frequency Percentage

18 - 25 73 73

26 - 35 12 12

36 -45 13 13

45 Above 2 2

Total 100 100

Chart 4.1 shows the age of respondents

Age
2%

13%

12%

73%

18 - 25 26 - 35 36 - 45 45 above

Interpretation

Table 4.1 shows that majority of the respondents belongs to the category of 18 -25
which has 73 percentage of the respondents.13 percentage belongs to 36 – 45 category.12
percentage belongs to 26 – 35 category and 2 percentage of respondents belongs to above 45
age category
 Table 4.2 shows the gender of respondents

Gender Frequency Percentage

Male 50 50

Female 50 50

Other 0 0

Total 100 100

Chart 4.2 shows the gender of respondents

Female Male
50% 50%

Interpretation

Table 4.2 shows that out of 100 respondents 50 percentage of the respondents belongs
to male category and the rest 50 percentage of respondents belongs to female category.
 Table 4.3 shows the employment status of respondents

Employment status Frequency Percentage

Student 66 66

Business 7 7

Self employed 4 4

Salaried employee 13 13

Home maker 5 5

Profession 4 4

Unemployed 0 0

Other the 1 1

Total 100 100

Chart 4.3 shows the employment status of respondents

Employment Status
0 1
4 Student
5
Business
13
Self Employed

4 Salaried Employee
Home maker
7
66 Profession
Unployed
other

Interpretation

Table 4.3 shows that out 100 respondent’s majority were belonging to student
category. 13 percentage of the respondents belongs to salaried employee category and 7
percentage belongs to business category.
 Table 4.4 shows the Awareness on Amazon's use of AI in its products service

Awareness Frequency Percentage

Fully aware 26 26

Aware 49 49

Neither aware or 12 12
unaware

Unaware 10 10

Fully unaware 3 3

total 100 100

Chart 4.4 shows the Awareness on Amazon's use of AI in its products service

AWARENESS
Fully Unaware
Unaware 3%
10% Fully Aware
26%
Neither aware or
unaware
12%

Aware
49%

Interpretation

Table 4.4 shows that out of 100 respondents most of the respondents were aware of
Amazon's use of AI in its products service and 26 percentage of the respondents are fully
aware of the same. 12 percentage of the respondents are neither aware or unaware and 10
percentage of the respondents are unaware. Rest 3% of respondents are fully unaware how
Amazon uses AI in its products and service.
 Table 4.5 shows ranking based on consumer’s experience

Ranking

Al Oft Som Rar Nev

ways en etimes ely er

Have you 29 27 24 11 9
ever purchased
through
Amazon's
personalized
product
recommendation.

Have you 13 21 18 11 37
made purchases
based on
Amazon's
personalized
loyalty program

Have you 14 15 16 16 39
ever purchased a
product
recommended
through virtual
assistant or
chatbot

Have you 10 26 12 13 39
made purchases
based on
remainder e-
mails for
abandoned carts

Have you 11 15 27 17 30
ever faced a
problem in
finding products
on Amazon

Have you 9 23 16 12 40
ever had any
negative
experiences with
Amazon's AI-
powered features,
such as
inaccurate
recommendations
or frustrating
interactions with
virtual assistant
or chatbot?
 Chart 4.5 shows ranking based on consumer’s experience

always often sometimes rarely never

45

40

35

30

25

20

15

10

0
Have you ever Have you made Have you ever Have you made Have you ever Have you ever had
purchased purchases based purchased a purchases based faced a problem in any negative
through Amazon's on Amazon's product on remainder e- finding products experiences with
personalized personalized recommended mails for on Amazon Amazon's AI-
product loyalty program through virtual abandoned carts powered features,
recommendation. assistant or such as inaccurate
chatbot recommendations
or frustrating
interactions with
virtual assistant or
chatbot?

Interpretation

The chart shows that Majority of the respondents (29%) have purchased through
Amazon’s personalized product recommendations. 37% of respondents consisting the
majority have never made any purchase based on Amazon’s personalized loyalty program.
Most of the respondents consisting 39% have never purchased any product recommended by
virtual assistant or chatbot and have also not made any purchase based on e-mail remainders
on abandoned carts. 30% of the respondents have never faced any problem in finding
products on amazon and the majority 40% have also never had any negative experience with
amazons AI powered features.
 Table 4.6 shows the accuracy of Amazons product recommendation

Accuracy Frequency percentage

Highly accurate 16 16

Accurate 43 43

Neutral 40 40

Inaccurate 1 1

Highly inaccurate 0 0

Total 100 100

Chart 4.6 shows the accuracy of Amazons product recommendation

50

45

40

35

30

25

20

15

10

0
Highly accurate Accurate Neutral Inaccurate Highly inaccurate

Interpretation

Table 4.6 shows that out 100 respondents’ majority of them thinks Amazon’s product
recommendations are accurate. 40 percentage of the respondents are neutral about Amazon’s
product recommendations and 16 percentage thinks Amazons product recommendations are
highly accurate. Rest 1 percentage of the respondents thinks that amazon’s product
recommendations are inaccurate.
 Table 4.7 shows the most used features of Amazon

Features Frequency Percentage

Chatbot 17 17

Visual search 43 43

Scan 14 14

Virtual assistance (Alexa) 12 12

Virtual try on 4 4

Buy again 25 25

Subscribe and save 6 6

Coupons 31 31

Personalized gift 12 12

Wallet 21 21

Prime 36 36

Suggested products 34 34

Schedule delivery 19 19

Others 4 4
 Chart 4.7shows the most used features of Amazon

50
45 43

40 36
34
35 31
30
25
25 21
19
20 17
14
15 12 12
10 6
4 4
5
0

Interpretation

Table 4.7 shows the most used features of Amazon is visual search with a percentage
of 43. Prime is the second most used feature of amazon by 36 percentage of the respondents.
34 percentage of the respondents use suggested products feature and 31 percentage of them
uses coupon. Buy again feature is used by 25 percentage and wallet is used by 21 percentage
of the respondents. 19 percentage of respondents use scheduled delivery and 17 percentage
uses chatbot feature of amazon while they make purchase. The scan feature of amazon is used
by 14 percentage and visual search and personalized gift feature is used by 12 percentage of
the respondents. The least used features by the respondents are subscribe and save (6%),
virtual try on (4%) and other features (4%).
Table 4.8 shows consumers ranking as per their judgement over Amazon’s application of
Artificial Intelligence

Statements Ranking

strongly agree neutral disagree strongly

agree disagree

1) Amazons use of 28 41 29 0 2
AI in its product
recommendation
has improved
shopping
experience

2) Amazon's use of 12 56 27 3 2
chatbot has
improved its
customer service

3) E-mail 16 39 28 11 6
campaigns are
effective in
creating demand
for products

4) Virtual try on 19 45 24 9 3
feature of
Amazon have
made shopping
more convenient

5) Personalized 24 48 16 8 4
pricing offers
creates a sense of
 urgency to buy
products.

6) AI powered 23 45 20 10 2
product
recommendations
are more
effective than
traditional
recommendations

7) Chatbot 16 42 30 7 5
understand and
cater to
customers unique
needs and
preferences

8) AI powered 16 43 28 11 2
recommendations
creates demand
for products that
customers would
not have
purchased
otherwise

9) Amazon's use of 23 41 23 8 5
AI has impacted
your buying
behavior
 Chart 4.8 shows consumers ranking as per their judgement over Amazon’s application
of Artificial Intelligence

60 56

48
50 45 45
42 43
41 41
39
40
30
28 29 27 28 28
30
24 24 23 23 23
19 20
20 16 16 16 16
12 11 11
9 10
8 7 8
10 6 5 5
3 2 3 4
2 2 2
0
0
1 2 3 4 5 6 7 8 9

strongly agree agree neutral disagree strongly disagree

Interpretation

The chart shows that majority of the respondents (41%) agree that amazon’s use of
Artificial intelligence have improved their shopping experience. 56 respondents agree that
chatbot have improved amazon’s consumer service and 39 of them agrees that e-mail
campaigns are effective in creating demand for products. 45 respondents agree that virtual try
on feature of amazon have made shopping more convenient and also felt AI powered
recommendations to be more effective than traditional recommendations. Majority of the
respondents (48) agree that personalized pricing creates an urgency to buy products and 42 of
them agree that chatbot can cater to customer’s unique needs. 43 of them agree that AI
powered recommendations creates demand for products that they would not have purchased
otherwise and 41 of them agrees that Amazon's use of AI has impacted their buying behavior.
Table 4.9 shows the respondents concern towards the potential privacy implications of
Amazon while using AI, such as data collection and analysis.

Concern Frequency Percentage

Highly concerned 27 27

Concerned 61 61

Less concerned 12 12

Total 100 100

Chart 4.9 shows the respondents concern about the potential privacy implications of
Amazon's use of AI, such as data collection and analysis

Concern

12%
27%

61%

Highly concerned Concerned Less concerned

Interpretation

Table 4.9 shows that out of 100 respondents 61 percentage of the respondents are
concerned about the potential privacy implications of Amazon's use of AI, such as data
collection and analysis and 27 percentage of respondents are highly concerned while 12
percentage of the respondents are less concerned.
 Table 4.10 shows the respondents thought on improving Amazon’s use of AI to better
serve its customers.

Suggestion Frequency Percentage

Yes 56 56

No 11 11

May be 33 33

Total 100 100

Chart 4.10 shows the respondents thought on improving Amazon’s use of AI to better serve
its customers

yes

33% no

56% maybe

11%

Interpretation

Chart 4.10 shows majority of the respondents thought that Amazon could improve its
use of AI to better serve its customers .11 percentage of the respondents think there is no such
need to improve and 33 of them thinks that Amazon can maybe improve its AI to better serve
its customers.
 Table 4.11 shows if the respondents would recommend Amazon or use different platforms

Frequency Percentage

Yes 72 72

No 21 21

Other platforms 7 7

Total 100 100

Chart 4.11 shows if the respondents would recommend Amazon or use different
platforms

other platform
7%
no
21%

yes
72%

yes no other platform

Interpretation

Table 4.11 shows that out of 100 respondents 72 percentage of the respondents will
use and recommend Amazon to other based on its use of AI .21 percentage of the respondents
will not recommend Amazon to other based on its use of AI and rest 7 percentage of
respondents will prefer to use other platforms.
 CHAPTER 5
FINDINGS, SUGGESTIONS, CONCLUSION
 FINDINGS

 Majority of the respondents of the study were from the age group of 18 – 25 which
shows that the people in this age group is more into online shopping.

 Half of the respondents were male and the other half was female which indicates that
people prefer AI powered platforms irrespective of the gender.

 The data shows that people with different employment status uses AI powered
platforms.

 Majority of the respondents were aware of Amazon using Artificial Intelligence while
almost 13 percentage of the respondents were not aware of the use of Artificial
Intelligence in Amazon.

 Most of the respondents have made purchases based on Amazon’s personalized

product recommendations which shows the influence of AI over consumer buying
behavior.

 Majority of the respondents have never made a purchase based on Amazon’s

personalized loyalty program which thus indicates an area where Amazon needs to
improve.

 The data collected indicates that most of the respondents have not made any purchase
based on products recommended by chatbot or virtual assistant. This shows that the
people are not fully influenced by AI recommendations.

 As per the study, majority of the respondents have not made any purchase based on e-
mail remainders on abandoned carts which shows that the people care less about e-
mail remainders.

 The study analyzed that Amazon makes a good use of AI as majority of the consumers
have not faced any difficulty in finding products on Amazon and have never faced any
difficulty with or negative experience with Amazon’s use of AI.

 Majority of the consumers feel that amazon’s product recommendations are accurate.
 The most used AI powered feature of Amazon as per the study is visual search
followed by prime and suggested products.

 Most of the respondents agree that amazon’s use of AI have improved their shopping
experience.

 Majority of the respondents agree that chatbot have improved amazon’s consumer
service and caters to consumer’s unique needs and preferences.

 The study shows that Artificial Intelligence helps in creating demand for the products
through e-mail camping’s and consumers tend to purchased product through
recommendations that they would not have purchased otherwise.

 As per the data, the consumers agree that AI powered recommendations are more
effective than traditional recommendations.

 The study indicates that use of Artificial Intelligence in e-commerce has influenced
the buying behavior of consumers.

 Majority of the people are concerned about the potential privacy implications of
Amazon's use of AI, such as data collection and analysis.

 The consumers think that Amazon could improve its use of AI to better serve its
customers.

 Most of the respondents prefer to use amazon and would recommend it to others,
which shows the effectives of the platform in satisfying its customers.
SUGGESTIONS

 Amazon can improve its AI to better serve its customers

 The data collection and privacy implication concern of the consumers can met in an
effective way

 Amazon can use AI to provide accurate products to avoid consumers receiving wrong
products.

 It can use AI to identify fraud and defective products.

 It can be transparent in the data it collects to reduce the tension in the minds of
consumers
CONCLUSION

Amazon have made tremendous progress enhancing its operations and customer experience
with the implementation of Artificial Intelligence. Personalization, recommendation engines,
logistics and supply chain management, fraud detection, and natural language processing are
just a few of the areas where Amazon uses AI. Amazon has been able to improve customer
experience, increase productivity, and streamline operations with the adoption of Artificial
Intelligence. Additionally, by recommending products to customers based on their browsing
and purchase history, AI-powered recommendation systems have assisted Amazon in
increasing sales. The study reflects the positive attitude of the consumers towards the
application of AI in Amazon. The consumers experienced better shopping experience with the
assistance of Artificial Intelligence. The success of Amazon through its implementation of
Artificial Intelligence reflects the substantial impact of Artificial Intelligence over the drastic
progress of e-commerce platforms. However, there are certain issues with Amazon's usage of
AI as well. The consumers are concerned about the collection of personal data by the company
and thinks that Amazon could improve its use of Artificial Intelligence for better customer
support.

Even though Artificial Intelligence provides a great opportunity for e-commerce platforms to
prosper, the cost of installation and technical knowledge required for implementing Artificial
Intelligence is immense. Besides the challenges to deal with, the implementation Artificial
Intelligence has clearly made an impact on the drastic progress of e-commerce industry.
Artificial Intelligence has been a major factor in Amazon's success. Despite the company's
impressive achievement in using AI to enhance operations and customer satisfaction, there is
still space for improvement in how it addresses worries about the use of AI.
ANNEXURE
QUESTIONNAIRE

1. E-mail:
2. Age:

18 – 25

26 – 35

36 – 45

Above 45

3. Gender: Male Female Other

4. Employment status

Student

Business

Self employed

Salaried employee

Home maker

Profession

Unemployed

Other
5. Are you aware of how amazon uses AI in its products and services?

Fully aware

Aware

Neither aware or unaware

Unaware

Fully unaware
6. rank the following based on your experience

Question Ranking
Always Often Sometimes Rarely Never
 a) Have you ever purchased
through Amazon's
personalized product
recommendation.
b) Have you made purchases
based on Amazon's
personalized loyalty
program
c) Have you ever purchased a
product recommended
through virtual assistant or
chatbot
d) Have you made purchases
based on remainder e-mails
for abandoned carts
e) Have you ever faced a
problem in finding products
on Amazon
f) Have you ever had any
negative experiences with
Amazon's AI-powered
features, such as inaccurate
recommendations or
frustrating interactions with
virtual assistant or chatbot?

7. How accurate do you think amazon’s product recommendations are?

highly accurate

accurate

neutral

inaccurate

highly inaccurate
8. Which of the following feature of amazon do you use the most?

Chatbot

visual search

Scan

Virtual assistance (Alexa)

Virtual try on

Buy again

Subscribe and save

Coupons

Personalised gift

Wallet

Prime

Suggested products

Schedule delivery

other
9. Rank the following based on your judgement.

Statements Ranking
strongly agree neutral disagree strongly
agree disagree
1) Amazons use of AI in its
product recommendation
has improved shopping
experience
2) Amazon's use of chatbot
has improved its customer
service
3) E-mail campaigns are
effective in creating
demand for products
 4) Virtual try on feature of
Amazon have made
shopping more convenient
5) Personalized pricing offers
creates a sense of urgency
to buy products.
6) AI powered product
recommendations are more
effective than traditional
recommendations
7) Chatbot understand and
cater to customers unique
needs and preferences
8) AI powered
recommendations creates
demand for products that
customers would not have
purchased otherwise
9) Amazon's use of AI has
impacted your buying
behaviour

10. Are you concerned about the potential privacy implications of Amazon's use of AI,
such as data collection and analysis?

Highly concerned

Concerned

Less concerned
11. Do you think Amazon could improve its use of AI to better serve its customers?

Yes

No

Maybe
12. Would you recommend Amazon to others based on its use of AI, or would you prefer
to use a different platform with different AI features.

Yes

No

Other platform
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