Evaluation and adoption of artificial intelligence in the retail industry
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 3 April 2023
Issue publication date: 23 May 2023
Abstract
Purpose
The introduction of artificial intelligence (AI) technology has had a substantial influence on the retail industry. However, AI adoption entails considerable responsibilities and risks for senior managers. In this study, the authors developed an evaluation and selection mechanism for successful AI technology adoption in the retail industry. The multifaceted measurement and identification of critical factors (CFs) can enable retailers to adopt AI technology effectively and maintain a sustainable competitive advantage.
Design/methodology/approach
The evaluation and adoption of organisational AI technology involve multifaceted decision-making for management. Therefore, the authors used the analytic network process to develop an AI evaluation framework for calculating the weight and importance of each consideration. An expert questionnaire survey was distributed to senior retail managers and 17 valid responses were obtained. Finally, the Vlse Kriterijumska Optimizacija Kompromisno Resenje (VIKOR) method was used to identify CFs for AI adoption.
Findings
The results revealed five CFs for AI adoption in the retail industry. The findings indicated that after AI adoption, top retail management is most concerned with factors pertaining to business performance and minor concerned about the internal system's functional efficiency. Retailers pay more attention to technology and organisation context, which are matters under the retailers' control, than to external uncontrollable environmental factors.
Originality/value
The authors developed an evaluation framework and identified CFs for AI technology adoption in the retail industry. In terms of practical application, the results of this study can help AI service providers understand the CFs of retailers when adopting AI. Moreover, retailers can use the proposed multifaceted evaluation framework to guide their adoption of AI technology.
Keywords
Acknowledgements
This research was partially funded by the Ministry of Science and Technology, Taiwan, ROC. (No: MOST 111-2410-H-992-007).
Citation
Fu, H.-P., Chang, T.-H., Lin, S.-W., Teng, Y.-H. and Huang, Y.-Z. (2023), "Evaluation and adoption of artificial intelligence in the retail industry", International Journal of Retail & Distribution Management, Vol. 51 No. 6, pp. 773-790. https://doi.org/10.1108/IJRDM-12-2021-0610
Publisher
:Emerald Publishing Limited
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