AI Intergration in Commerce

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Introduction

Artificial intelligence is way of making a computer-controlled robot or software think intelligently as the
intelligent humans think. In the dynamic trend of technology and the related competition, where indi-
viduals scrabble for life longing careers. Artificial intelligence in commerce tremendously stepped in with
heightened efficiency in diverse industries. Hence, the need to integrate AI in commerce, a big stride
from e-commerce to a more sophisticated technology. This is also the implementation of AI as a bridge
to eliminate peradventure of academicians on their approach to the future they are pioneering.
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As the expression, AI had gone viral it has also become more crucial and increasingly pervasive in al-
most all aspect of life such as health care, biology, information technology, learning and business. In re-
ality, our daily lives involve frequent and continuous interactions with AI through various means. For ex-
ample the way we use our phones, like automatic correction of mistyped words based on user’s typing
habits. Practical uses for AI can also be found both within and outside homes, for example driverless
cars like Waymo and Tesla cars, voice recognition on phone securities and automated robots. All belong
to the phenomena technologies based on AI (Schwab 2016).

It is also used by TikTok to choose the next video shown to you , by Amazon to recommend products
when you are shopping online and even by Apple to unlock your phone via facial recognition. In every
case AI creates a solution based on high performance computing power analyzing vast amounts of data
but it can also do a lot more . it can help students and graduates plan for their next job, learning the
skills needed for the job , and these requirements are not static infact skill requirement are evolving
rapidly because of technology and business developments and disruptors occur at an unprecedented
rate. (Times High Education, Teck Hua Ho NUS 2022).

History of AI

The historical background of artificial intelligence has existed for approximately 100 years. fIn the year
1920, the Czech playwright, Karel Čapek coined the term artificial man throughout a sci-fi play that was
called Rossum’s Universal Robots (Rossumovi Univerzální Roboti), known as R.U.R. The play revolves
around a factory that produces artificial men, called robots. In RUR, robots were originally born to work
for humans, but then revolted and led to the extinction of humanity. The play was a groundbreaking sci-
ence fiction work that audiences found to be both captivating and terrifying. First, It presents the term
robot, even though it does not possess the advanced thought of robots. Additionally, it is relating the
story of how robots were created. However, RUR's dystopian future scenario in which robots pose a
threat to humanity was audacious and horrifying. (Lowe 2021.)

At the beginning of 1950, "Computing Machinery and Intelligence," marked the beginning of the AI dis-
cussion. Alan Turing was a young British polymath and computer scientist who investigated the mathe-
matics underlying artificial intelligence. He often referred to as the "father of computer science," asks
one question about that machines could think in his seminar work. Thence, he propounds the now-fa-
mous testing method that is Turing Test, in which an interrogator tries to distinguish between a text re-
sponse from a computer and one from a human. Because this is one of the first tests of artificial intelli-
gence, it is an important element of the history of AI and a continuing philosophical concept that incor-
porates linguistics-based ideas. (New 2020.)

In 1956, John McCarthy, who came along a few years after Turing, is credited with being the first person
to use the word "artificial intelligence" to explain machines that are capable of thinking on their own
Dartmouth Conference. Allen Newell and Herbert Simon were instrumental in advancing AI as a poten-
tially world-changing field of software engineering. (Ray 2018.) The 1960s was a time of active activity
for researchers in the AI field. Research on AI during this time achieved remarkable achievements such
as developing robots with machine learning capabilities, However, these successes created too high ex-
pectations for AI. Therefore, by the mid-1970s, progress in the field of artificial intelligence slowed for a
variety of reasons. Computer scientists faced a severe lack of funding for artificial intelligence research.
These years eventually became known as the "Artificial Intelligence Winters" or "AI Winters." (Ray
2018.) 9 Until the 1980s, the development of AI was aided by both financial resources and tools for algo-
rithm creation. This was a crucial factor in the subsequent developments, such as IBM's Deep Blue-chess
computer, which in 1997 beat World Champion Gary Kasparov. (Potenza 2021; Ray 2018.)

current state of AI
These days, we can collect massive volumes of data that would be extremely difficult for a Human to analyze with-
out the advent of "Big data." Numerous fields, including technology, Banking, marketing, and entertainment, have
already reaped the benefits of the Implementation of artificial intelligence with great success. (Anyoha 2017.)The
most recent research from the ai index found that enterprise usage of ai grew by 47% In comparison to 2018. That
interest in AI-related technologies and businesses has led to Over $70 billion in private investment worldwide in
2019, according to the same research.(Marsner 2020.)

In particular, from 2020 to 2021, with the assistance of AI, medical laboratories and health Corporations were able
to create vaccines for the pandemic that affected the entire world in a matter of months, whereas the develop-
ment of vaccines typically took years. In addition, Researchers and scientists at MIT use AI to try to find ways to use
existing medications to Fight the pandemic. Even before the pandemic reached its peak, many healthcare Profes-
sionals assumed that artificial intelligence would be the ultimate solution to many of Their issues. After more than
two years of use in the fight against the covid-19 virus, Artificial intelligence has already demonstrated its effective-
ness. (pechardscheck 2021.)

Moreover, there are some examples of everyday uses of AI: Siri, the voice assistant of apple, uses artificial intelli-
gence to better understand user Commands and routines to become more helpful over time. While it is still not as
responsive as a human assistant, it is getting more and better at its job With another example, Netflix utilizes ai to
provide recommendations and trends. Netflix's Ai analyzes user viewing history and ratings, as well as dynamic fac-
tors such as the time Of day, to determine users’ viewing preferences. (Simplilearn 2022.)To summarize, ai is trans-
forming the way businesses operate and work with their processes And products on both sides. It is also impacting
the way businesses interact with their Customers. Companies of all sizes use ai to enhance processes, analyze big
data more Quickly, and reduce human error and labor. Customers derive tangible benefits from the outcomes ai
has too much potential to be ignored despite the cost and other obstacles involved in its successful implementa-
tion.

Objectives
The study seeks to get clarity on the integration of AI in commerce. This is formulated as follows:

-To understand the present status of e-commerce.

-To study the impact of AI in commerce.

-To show AI applications in commerce.

-To describe and evaluate real world applications of AI in commerce (the e-commerce) concerning their
usefulness and applicability to academicians. and the industry.

Literature Review: AI Integration in Commerce

Artificial Intelligence (AI) has become a critical component of many industries. There has been a signifi-
cant increase in the use of AI in commerce to automate tasks that would have traditionally been per-
formed by humans. With advancements being made in machine learning and predictive technologies, AI
is becoming an increasingly powerful tool in the creation of intelligent systems that can make informed
decisions. Artificial Intelligence (AI) is rapidly transforming the way businesses operate and manage their
operations. AI-powered machines, tools, and software solutions become more sophisticated by the
minute, bringing about innovative ways of performing tasks that were once thought to only be possible
for humans. Today, the use of AI in commerce is being realized, leading to a demand for professionals
that can work with this technology. This literature review examines the studies conducted on AI integra-
tion in commerce, specifically bridging the gap between academia and industry opportunities.

Several studies have been conducted linking AI integration in commerce to career opportunities. Li,
Dong, Wang, and Liang (2018) examined artificial intelligence and its impact on e-commerce and mar-
keting. The study concluded that applying AI in online marketing has led to improved customer satisfac-
tion and conversion rates. New algorithms such as deep learning have also been used to enhance prod-
uct recommendations. According to the study, AI is expected to create more job opportunities for data
scientists, computer engineers, and user experience professionals.

Another study conducted by Zhang and Zhu (2018) examined the evolution of AI in the Chinese e-com-
merce industry. The study revealed that AI had revolutionized the industry by streamlining supply chain
management, logistics, and product development. The study also revealed that AI had led to the emer-
gence of new professions such as data scientists, machine learning engineers, and AI consultants.

1. AI Integration in E-commerce

E-commerce has seen tremendous growth in recent years, and AI is being used to provide a personalized
shopping experience for consumers. AI technologies in e-commerce include chatbots, recommendation
engines, and personalized content delivery systems. These technologies allow e-commerce businesses
to interact with customers, understand their needs, and provide customized recommendations and
search results.For instance, Amazon uses AI to provide personalized product recommendations to its
customers based on their browsing and purchase history. Similarly, Netflix uses AI to personalize movie
recommendations for its users based on their viewing history. These AI technologies, along with others,
have significantly improved the shopping experience for customers and increased sales for e-commerce
businesses.

2. AI Integration in Marketing

The integration of AI in marketing has helped businesses to understand consumer behavior, automate
ad campaigns, and generate personalized content. AI technologies such as predictive analytics, natural
language processing, and sentiment analysis have been used to create intelligent systems that can ana-
lyze customer data to identify patterns and trends.For example, Adobe Sensei is an AI system that ana-
lyzes customer data to create personalized marketing campaigns. Similarly, Salesforce Einstein uses AI to
analyze customer behavior to predict customer needs and personalize communications. These AI tech-
nologies have significantly improved the effectiveness of marketing campaigns and increased customer
engagement.

3. AI Integration in Supply Chain Management

AI is being used in supply chain management to automate inventory management, optimize logistics,
and reduce costs. AI technologies such as machine learning and predictive analytics have been used to
create intelligent systems that can predict demand and optimize inventory levels.For instance, Walmart
uses AI to optimize its inventory levels and reduce waste. It uses machine learning algorithms to analyze
sales data, weather patterns, and other data points to predict demand for products. Similarly, DHL uses
AI to optimize its logistic operations. It uses predictive analytics to identify the most efficient routes for
delivering packages and optimize its delivery times.

4. AI Integration in Finance

AI has been integrated into finance to automate financial processes, identify fraud, and create personal-
ized financial products. AI technologies such as machine learning and predictive analytics have been
used to create intelligent systems that can analyze financial data to identify patterns and make informed
decisions.For example, PayPal uses AI to identify fraudulent transactions. It uses machine learning algo-
rithms to analyze user behavior to identify abnormal transactions and block them before they occur.
Similarly, Ally Bank uses AI to create personalized financial products. It uses predictive analytics to ana-
lyze customer data and create financial products that best fit their needs.

ssFurthermore, there is a growing demand for individuals with AI experience in the financial services in-
dustry. A study by Chen et al. (2018) revealed that AI and machine learning have the potential to trans-
form finance by improving fraud detection, reducing operational costs, and improving the effectiveness
of investment decisions. The study emphasized the need for professionals with an understanding of
both quantitative finance and AIBridging the Gap between Academia and Industry Opportunities:

A gap exists between academia and industry opportunities in AI, with some academics not keeping up
with the rapidly evolving industry trends. According to Brundage et al. (2018), universities lag behind in-
dustry in the development of AI technology. To bridge the gap, universities need to collaborate more
with industry to identify areas where AI can be applied and develop curriculum that incorporates practi-
cal applications of AI.
In their study, Searcy and Williams (2019) identified skills in demand for AI professionals, including prob-
lem-solving, data analysis, and creative thinking. They also acknowledged that universities need to incor-
porate practical applications of AI in coursework to prepare students for industry jobs. The authors sug-
gested pairing students with industry professionals to facilitate mentoring and provide an opportunity to
apply their theoretical knowledge in practical settings.

Conclusion:

The integration of AI in commerce has disrupted the industry, leading to the emergence of new career
opportunities. Furthermore, the gap between academia and industry opportunities can be bridged by in-
corporating practical applications of AI in coursework, collaborating with industry, and pairing students
with industry professionals for mentoring. As AI continues to transform commerce, it remains impera-
tive for academics to keep up with industry trends and prepare students for careers in AI-powered in-
dustries. The integration of AI in e-commerce and marketing has led to the creation of several job oppor-
tunities. Here are a few examples:

s and applicability to academicians. and the industry.


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