Bachelor Dissertation, Anass Benattea.

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UNIVERSITE UNTERNATIONAL OF RABAT

RABAT BUSINESS SCHOOL

END-OF-STUDIES PROJECT
For graduation: Bachelor
Option: International program in management

Topic:
“The impact of AI on customer behavior and
preferences in e-commerce.”

Prepared by: ANASS BENATTEA


Supervised by: Mr. SOULAIMANE LAGHZAOUI
Academic year: 2022/2023

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Acknowledgment:
I want to start by thanking God for giving me the strength and belief
to finish my dissertation. I also want to show my appreciation to
everyone who helped me with my work. Firstly, I am grateful to my
parents for their support, kindness, sacrifices, and prayers. They have
been there for me throughout this journey, and I am very thankful
for them.

I also want to thank my academic tutor, Mr. Soulaimane Laghzaoui,


for his commitment and helpful advice . He gave me some valuable
feedback and guidance that really helped me to finish this project.
I feel lucky to have him as my tutor, and I hope that this work
makes him proud.

Finally, I want to give my deepest gratitude to Rabat Business School


especially, the professors and courses there were excellent and the
staff behind the scenes that have been here all the time guiding and
supporting us, I want to thank you for this amazing educational
experience that I will never forget.

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Abstract:
This dissertation examines the history of artificial intelligence (AI) and
its profound impact on e-commerce processes and customer
behavior. The study explores the evolution of AI technologies, tracing
their development from early AI concepts to modern machine
learning and deep learning approaches. The research investigates
how AI has revolutionized various aspects of e-commerce, including
the product sourcing and selection, marketing, and customer service.

Through an extensive literature review, this study will explore the


rich history of artificial intelligence (AI) and identifies the keyways in
which AI has transformed e-commerce processes. AI algorithms have
significantly improved efficiency by automating repetitive tasks and
optimizing decision-making. The integration of AI has led to
enhanced personalization, allowing businesses to deliver tailored
product recommendations, targeted advertisements, and customized
customer experiences. AI-powered chatbots and virtual assistants
have also revolutionized customer service interactions, giving
customers timely, accurate responses to their inquiries.

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Furthermore, this dissertation examines the impact of AI on
customer behavior within the e-commerce context. The research
finds that AI technologies have influenced consumer preferences and
purchasing patterns. AI-driven recommendation systems have
successfully influenced customer decisions, leading to increased
engagement and conversion rates. The convenience and
personalization offered by AI have reshaped customer expectations,
resulting in a shift towards more personalized and seamless shopping
experiences.

Overall, this dissertation highlights the immense potential of AI in


transforming e-commerce processes and shaping customer behavior.
It reveals the need for businesses to adapt to the advancements in AI
technology, strike a balance between automation and human
interaction.

KEY WORDS:

Artificial intelligence, e-commerce business , customer behavior,


customer experience, customer attitude, customer loyalty, purchase
intention ,chatbots , decision-making, personalization, design,
marketing .

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TABLE OF CONTENTS:

ACKNOWLEDGMENTS.......................................................... 2
Abstract...............................................................................3
LIST OF
ABBREVIATIONS................................................................. 7
INTRODUCTION.................................................................. 8
a. Research questions…..................................................10

LITERATURE REVIEW......................................................11
I. The history of artificial intelligence…..................................11
II. The definitions of artificial intelligence.............................18
III. Types of artificial intelligence….........................................22
a) Weak AI........................................................................22
b) Strong AI.......................................................................23
IV.The history of AI in e-commerce businesses....................24
V. Exploring the Factors Impacting the Integration of AI in
E-commerce: PESTLE Analysis.........................................27
Unleashing the Power of AI: Processes Optimization and
Customer Behavior
Analysis.................................................................................28
A. E-commerce businesses processes and
AI.................................................................................28
a. Product sourcing and selection...............................31

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b. Website development and design..........................32
c. Marketing and advertising......................................34
d. Summary................................................................37
B. Customer behavior and
AI.........................................................................38
a. Summary….............................................................44
Methodology............................................................ 45
a. Quantitative approach..........................................45
b. Data collection and analysis…...............................46
c. Survey....................................................................47
d. Survey questions….................................................48
Results and findings................................................ 49
Conclusion.............................................................. 58
Limitation and further studies.................................60
References.............................................................. 62
Appendix................................................................65

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List of abbreviations:

AI: Artificial intelligence

DSRP: the Dartmouth Summer Research Project

IBM: International Business Machines Corporation

ANI: Narrow artificial intelligence

ASI: Strong artificial intelligence

AGI: Artificial general intelligence

ASIS: Artificial super intelligence

CRM: Customer relationship management

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Introduction:
Artificial Intelligence (AI) has revolutionized various industries, and
the e-commerce sector has not been immune from it. AI has evolved
into a decisive tool for organizations to understand and evaluate
consumer behavior and preferences as data and processing power
become increasingly accessible. AI is being used by e-commerce
businesses to improve client retention, boost sales, and personalize
the customer experience.

AI is changing the economic landscape and creating modifications


that can be helpful for consumers and entrepreneurs. It is becoming
more popular in business, especially in areas like administration,
marketing, and finance. AI creates new chances for substantial
changes in the economy. For example, it helps businesses see
patterns in big data and make better products that customers will
like. E-commerce is benefiting a lot from AI because it makes things
faster and better. AI can also help reduce mistakes caused by
humans. Even though AI might mean less jobs for people, it is still
extremely helpful for businesses.

This dissertation aims to study the ideas behind AI and e-commerce


and to investigate how AI affects consumer behavior and preferences
in e-commerce. This dissertation seeks to explore the impact of AI on
customer behavior and preferences in e-commerce, with a focus on
understanding how AI-powered technologies influence customer

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decision-making, purchase behavior, and brand loyalty. This study
will concentrate on how artificial intelligence (AI) is improving how
users engage with e-commerce platforms and how e-commerce
companies are utilizing AI to enhance client satisfaction and sales.

The research will begin by defining and simplifying the term “Artificial
intelligence,” and also the different kinds of AI tools that are used in
e-commerce, like chatbots, recommendation systems, and picture
recognition. Then, we will look at how people have changed the way
they shop and what they like since AI has become more common.
Finally, the study will assess how AI has affected e-commerce
companies, examining both the benefits and challenges of
implementing AI in this sector.

The result of this study will offer insightful information to e-


commerce businesses seeking to use AI to enhance consumer
satisfaction and increase sales. This research will also contribute to
the expanding of literature on the impact of AI on customer behavior
and preferences in e-commerce.

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THE RESEARCH QUESTIONS:

In e-commerce, AI has a positive impact on customer behavior and


preferences. Businesses can use AI to improve the customer
experience and increase sales. However, in order to build trust and
maintain a positive market reputation, it is critical to address
customer concerns about privacy and ethics.
AI technology has had an impact on traditional retail stores and their
customers. AI is used in e-commerce, such as Amazon and Alibaba, to
provide personalized recommendations, make shopping more
convenient, and automate the process. Customers can now shop
online at any time and from any location, reducing the need for
physical stores. Some retailers are also using artificial intelligence to
compete by analyzing customer behavior and improving product
placement.
We propose asking the following questions to organize our research
and gain more knowledge on the several topics discussed:
 What is artificial intelligence?
 How does the incorporating of AI technologies impact
on different aspects of e-commerce processes?
 To what extent does the implementation of AI influence
customer behavior to affect e-commerce customer loyalty and
repeat purchases?

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La literature review:
I. The history of Artificial intelligence:
Artificial Intelligence (AI) has a long history that goes back to ancient
times where robots and creatures with human-like intelligence were
featured in myths and legends. However, the modern development
of AI commenced in the 1950s when people started working on it in
the field of computer science.

. The Conference that Started it All

The Dartmouth Summer Research Project on Artificial Intelligence


was a six-week workshop held in the summer of 1956 at Dartmouth
College. It is commonly acknowledged as the birthplace of artificial
intelligence (AI). A group of researchers attended the workshop to
investigate the possibility of creating machines that "think" like
humans. Among those present were John McCarthy, Marvin Minsky,
Nathaniel Rochester, Claude Shannon, and others. The participants
included John McCarthy, Marvin Minsky, Nathaniel Rochester,
Claude Shannon, and others. The DSRP was the first academic
conference, when the term artificial intelligence was first coined by
John McCarthy in 1956 and set out to create a program that could
simulate human intelligence. (Dartmouth Artificial Intelligence Conference:
The Next Fifty Years. (2006). AI Magazine, 27(4), 67-150).

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The Dartmouth
Summer Research Project on Artificial Intelligence is a landmark
event in the history of AI and is credited with launching the field of AI
research. (McCarthy, J., Minsky, M. L., Rochester, N., & Shannon, C. E. (1955).
A proposal for the Dartmouth summer research project on artificial
intelligence. AI Magazine, 27(4), 12-14).

This is a copy representing the first page of the original proposal for
the dartmouth suumer research project on AI byJohn McCarthy1956.

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We cannot talk about
artificial intelligence and not mention the British Alan Turing. He was
an English mathematician, logician, and computer scientist who
made significant contributions to the development of modern
computing and artificial intelligence.( "Alan Turing". The British Library.
Archived from the original on 23 July 2019. Retrieved 29 July 2019).

Turing is best known for his work as a codebreaker for the British
government during World War II, where he was instrumental in
cracking the German Enigma code. His work was contributory in
shortening the war and saving countless lives. In addition to his
codebreaking work, Turing also made several contributions to the
field of computer science. He is widely regarded as the father of
computer science and artificial intelligence due to his development
of the concept of the "Universal Turing Machine," which laid the
foundation for modern computing.

Turing's work also resulted in the creation of the "Turing Test",


where a human interrogator would try to distinguish between a
computer and human text response. While this test has undergone
much scrutiny since it was published, it remains an important part of
the history of AI. (Turing, A. M. (1950). Computing machinery and
intelligence. Mind, 59(236), 433-460).

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AI research started in
the 1950s when researchers started exploring the possibility of
creating intelligent machines.

In 1954, Turing was persecuted for his same-gender attraction and


ultimately committed suicide. («Alan Turing: The Enigma" by Andrew
Hodges is a biography of Turing that includes detailed accounts of his

persecution and suicide). In 2009, the British government issued an

official apology for the way Turing was treated, and in 2013, Queen
Elizabeth II granted him a posthumous royal pardon. (BBC News. "Alan
Turing: Queen grants posthumous royal pardon." December 24, 2013.
https://www.bbc.com/news/uk-25561810).

Back in the 1960s, some bright people began developing programs


known as expert systems. These programs were designed to act like
human experts, making smart decisions about specific issues.
(Feigenbaum, E. A., & Feldman, J. (1963). Computers and thought. McGraw-
Hill).

However, because computers were slow and could not remember


much back then, progress was slow.

So, in the 70s and 80s, researchers started looking more into
knowledge-based systems and machine learning for AI. This
meant that computers could learn from data and improve their
performance. They figured out how to make computers better at
things like understanding speech, talking like humans, and seeing

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things like we do. It was
important! (Winograd, T. (1972). Understanding natural language. Cognitive
psychology, 3(1), 1-191).

By the time, the 90s came around, people working on AI started


trying to make computer systems that could think and understand
the world in a more human-like way, so They develop cognitive
architectures and neural networks to help. It was like they were
trying to make computers that could think, learn, and understand
stuff just like we do! (Davis, R., Shrobe, H., & Szolovits, P. (1993). What is a
knowledge representation? AI magazine, 14(1), 17-33).

In the early 2000s, computers got much faster and could store a lot
more information. This made it possible for scientists to work with
very large datasets, which they called "big data." They also developed
new kinds of computer programs called "machine learning
algorithms" that could learn to do things like recognize pictures and
translate languages, as well as humans can.

Nowadays, AI is used in many different things like virtual helpers and


cars that can drive themselves, as well as catching fraud and
diagnosing illnesses. The scientists who work on AI are always trying
to make it better and safer (AI safety), and they are looking at things
like how to make it easy to understand and use (AI explainable), and

how to make sure it does not hurt anyone or do anything wrong (AI
ethics).

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Here is an image from
KARL TATE an Infographics Artist showing the timeline of the major
events in the development of AI:

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(Image credit: by Karl Tate, Infographics Artist)

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The timeline of AI
continues to evolve, and we can expect to see further advances in
the coming years as researchers continue to develop new techniques
and applications for AI.

II. The Definitions of Artificial intelligence:

Before we talk about artificial intelligence, we should first understand


what the term “intelligence” means. Even though researchers and
experts have studied intelligence for a long time and discussed it,
there is still no standard definition of it. This has led some people to
think that intelligence can be described to some extent but cannot be
completely defined. (Advances in artificial general intelligence: Concepts,
architectures and algorithms edited by Ben Goertzel and Pei Wand). Here are some
definitions that have been proposed by groups or organizations:

 The ability to use memory knowledge experience


understanding reasoning imagination and judgment in order to
solve problems and adapt to new situations. (A11Words
dictionary, 2006).
 the ability to acquire and apply Knowledge and Skills. ( Compact
Oxford English dictionary,2006).
 The general mental ability involved in calculating reasoning

perceiving relationships and analogies, learning quickly storing


and retrieving information using language fluently classifying
generalizing and adjusting to new situations. (“Definitions of
Intelligence - calculemus”) (Columbia encyclopedia, sixth edition,2006).

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So, what is artificial intelligence?
Many definitions of artificial intelligence (AI) have surfaced over the
last few decades, but the first ones who put the initial definition were
John McCarthy, Marvin Minsky, Nathaniel Rochester, and Claude
Shannon during the Dartmouth Conference in 1956. They define it as
"Every aspect of learning or any other feature of intelligence can in
principle be so precisely described that a machine can be made to
simulate it». (“Introduction to Machine Learning, Neural Networks, and Deep
Learning”). According to the 1956 overall definition of artificial

intelligence, machines can be programmed to copy any part of


intelligence, including learning, by precisely describing and modeling
it. This means that machines can simulate human intelligence by
employing algorithms that learn from data and improve over time.
This definition has since been expanded upon and refined as the field
of AI has developed over the years.

The Encyclopedia Britannica Define artificial intelligence as “the


ability of digital computers or computer-controlled robots to solve
problems that are normally associated with the higher intellectual
processing capabilities of human.”( Written and fact-checked by Editors
from encyclopedia Britannica). This means that AI system can perform

tasks that usually only a human can do such as learning, problem-

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solving, reasoning, decision-making, and language understanding. AI
uses different methods, like machine learning, natural language
processing, computer vision, robotics, and expert systems, to copy
how humans think and act. With these methods, AI systems can learn
from data, identify patterns, make predictions about the future, and
interact with their surroundings.

The computer scientist Edward Rich defines Artificial intelligence as


the study of how to make computers do things at which at the
moment people are better. (“Maschinelles Lernen und Data Mining |
SpringerLink”) (Rich, E., & Knight, K. (1991). Artificial intelligence). This

definition is identical to Stuart Russell and Peter Norvig's definition,


which states that AI is "the study of how to make machines
intelligent, and, more specifically, how to make them do things that
would require intelligence if done by humans" (Russell and Norvig, 2010,
p. 2). Based on these two definitions AI is the field of study focused on

making computers perform tasks that are currently better executed


by humans.

Alan Turing did not provide a specific definition of artificial


intelligence but if he did it would be something like this: “systems
that act like humans.” Or in simple terms “Can a machine behave in a
way that is identical from a human being's behavior?”

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Dobrev D. D. is an author who has written about AI will be such a
program which in an arbitrary world will cope no worse than a
human. (Dobrev D. D. A Definition of Artificial Intelligence. In: Mathematica
Balkanica, New Series, Vol). This definition implies that AI can learn from

experience, reason, make decisions, and perform tasks that require


complex problem-solving skills and creativity. It also suggests that AI
should be able to interact with humans in a natural way. Overall, this
definition of AI emphasizes the goal is to create machines that can
perform tasks at a level similar to or better than humans in various
settings.

AI definition is changing as a result of time and the development in


the computer science field that has been made over the years. For
the time being, artificial intelligence (AI) refers to the ability of
computer systems to perform tasks that would normally require
human intelligence, such as perception, reasoning, learning, decision-
making, and natural language processing. («Artificial Intelligence: A
Modern Approach" by Stuart Russell and Peter Norvig). (“Artificial Intelligence:

A Modern Approach ”) This definition explains the ability of computer

systems to perform tasks that usually need human intelligence, such


as perception, reasoning, learning, decision-making, and natural
language processing.

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III. Types of artificial intelligence:
Weak AI:
Weak AI, also known as Narrow AI or ANI, is the most
commonly seen type of AI in the market right now. These AI
systems are created to solve one specific problem and can
perform that task really well. They have limited capabilities and
can do things like suggesting products for online shoppers or
forecasting the weather. It's important to note that this is the
only type of AI that currently exists." (“What is Artificial
Intelligence? How does AI work and future of it”)
These AI systems can almost perform like humans in very
specific situations, and in many cases, they can even
outperform humans. However, they can only do this in very
controlled settings with a limited set of conditions. ("Artificial
Intelligence Basics: A Non-Technical Introduction" by Tom Taulli.). Many
everyday applications use this type of AI, including Siri, Alexa,
IBM Watson, and self-driving cars. Although it is referred to as
"weak" AI, it is far from that because it can perform tasks that
require a significant amount of computing power and
intelligence.

Capabilities and domains:


 Logical thinking
 Making decisions in case of uncertainty
 To plan
 To learn
 Communication in natural language
 Use all these abilities to achieve a common goal.

(Nick Bostrom How long before superintelligence? / Nick Bostrom.


- Linguistic and Philosophical Investigations, 2006.)

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Strong AI:
Strong AI (ASI) involves two types of AI “Artificial General
Intelligence (AGI) and Artificial Super Intelligence (ASIS).”
AGI is a theoretical form of artificial intelligence. It is defined as
“AI which has a human-level of cognitive function, across a wide
variety of domains such as language processing, image
processing, computational functioning, reasoning and so on.”
(“What is Artificial Intelligence? - openresearch.amsterdam”) (Research
Priorities for Robust and Beneficial Artificial Intelligence).

ASI, on the other hand, is seen as the logical progression from


AGI. "An Artificial Super Intelligence (ASI) system would be able
to surpass all human capabilities." (THE VALUE OF AI: now and the
future (PART 1) AI Impacts) This also involves tasks like making
decisions, making rational choices, and even includes areas like
creating improved artwork and building emotional
relationships.
(«Superintelligence: Paths, Dangers, Strategies," by Nick Bostrom.)

Despite the fact that both AGI and ASI are still in the realm of
theoretical research, they are expected to bring about
significant advancements in AI in the future.

Capabilities and domains:


 Expert systems
 Navigation systems
 Voice recognition
 Character recognition
 Suggestions in correction in searches

(Nick Bostrom How long before superintelligence? / Nick Bostrom.


- Linguistic and Philosophical Investigations, 2006.)

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The history of ai in e-commerce businesses :
The company That started all
In the late 1990s, the e-commerce company Amazon started using AI
techniques to improve their recommendation systems and offer
personalized experiences to customers. They wanted to analyze a lot
of data and provide intelligent recommendations to enhance the
overall shopping experience. They used AI algorithms, specifically
item-based collaborative filtering recommendation algorithms,
which analyzed customer preferences, purchase history and
browsing behavior to generate personalized suggestions. The main
goal was to make product recommendations more accurate and
relevant based on what customers liked. By using AI, e-commerce
businesses aimed to understand customers better and suggest
products that suited their needs, leading to happier customers and
increased sales. This early interaction between e-commerce and AI
paved the way for the integration of AI in different areas of the
industry, such as personalization, chatbots, visual search, fraud
detection, and more, which we see today. (Sarwar, B. M., Karypis, G.,
Konstan, J. A., & Riedl, J. (2001). Item-based collaborative filtering
recommendation algorithms. In Proceedings of the 10th
international conference on World Wide Web pp. 285-295)

The evolution of AI in e-commerce businesses


The concept of AI in e-commerce businesses has a history that dates
back several decades. Here is a timeline of key milestones and the
individuals and organizations associated with the beginnings of this
concept:

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 1990s: Early Adoption of AI Techniques
During the late 1990s, e-commerce pioneers like Amazon began using
AI techniques to enhance their recommendation systems. This
marked an early application of AI in e-commerce.
The concept was initiated by researchers and engineers at Amazon,
including Greg Linden, Brent Smith, and Jeff Bezos, the founder of
Amazon.( Sarwar, B. M., Karypis, G., Konstan, J. A., & Riedl, J. (2001). Item-
based collaborative filtering recommendation algorithms. In Proceedings of the
10th international conference on the World Wide Web pp. 285-295).

 Early 2000s: Expansion of AI in E-commerce


In the early 2000s, AI techniques in e-commerce expanded beyond
recommendation systems. Companies like eBay and Netflix also
started incorporating AI algorithms to improve customer experiences
and provide personalized recommendations.
The application of AI in these companies was driven by a combination
of internal teams, data scientists, and researchers working on
machine learning and data analysis.( Konstan, J. A., Riedl, J., & Harpstead,
E. (2000). Recommender systems: From algorithms to user experience. In
Proceedings of the 1st ACM conference on electronic commerce).

 2010s: Rise of Chatbots and Virtual Assistants


In the 2010s, there was a significant development in the integration
of chatbots and virtual assistants in e-commerce. These AI-powered
conversational agents transformed customer interactions and
support.
Companies like IBM (with their Watson platform), Facebook (with
Messenger chatbots), and various startups played key roles in

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developing and implementing chatbot technologies.( Hussain, A.,
Mkpojiogu, E. O., Gupta, B., & Khan, W. Z. (2018). AI Chatbot: A deep learning-
based chatbot for customer service).

 Mid-2010s: Visual Search and Image Recognition


Around the mid-2010s, AI algorithms enabled e-commerce platforms
to incorporate visual search and image recognition capabilities.
Users could search for products using images rather than text.
Companies such as Pinterest and Google, along with academic
researchers and startups, contributed to advancements in computer
vision and deep learning for visual search.( Huang, H., Jiang, X., & Shan, Z.
(2019). An intelligent clothing recommendation system based on image
recognition and deep learning).

 Present: Continued Advancements and Adoption


AI in e-commerce continues to evolve with advancements in natural
language processing, sentiment analysis, pricing optimization, supply
chain management, and more.
Multiple organizations, including large e-commerce companies, tech
giants like Google and Microsoft, and academic researchers
worldwide, contribute to ongoing advancements and applications of
AI in e-commerce.

While specific individuals and organizations played significant roles in


initiating and advancing the concept of AI in e-commerce, it is
important to note that the field has seen collective contributions
from a wide range of researchers, engineers, data scientists, and
industry professionals over time.

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Exploring the Factors Impacting the Integration of AI in E-
commerce: PESTLE Analysis
The PESTLE analysis provides a structured approach for examining
the external environment by analyzing the political, economic,
sociocultural, technological, legal, and environmental factors that
impact an industry or organization.
When conducting a PESTLE analysis of AI in e-commerce, it is
important to explore each factor in more detail and understand their
specific implications.
From a political perspective, it is crucial to consider government
policies and regulations regarding data privacy, security, and ethics in
AI applications. Additionally, assessing the level of political stability
and support for technological advancements in the e-commerce
industry can significantly impact the integration of AI technologies.
Economically, it is necessary to evaluate how economic conditions
can affect consumer spending and purchasing power, which directly
influence e-commerce sales. Furthermore, analyzing the costs
associated with implementing AI technologies and estimating the
potential return on investment helps businesses make informed
decisions about integrating AI and determining its profitability.
Sociocultural factors play a vital role in shaping the acceptance and
success of AI in e-commerce. Understanding consumer attitudes
towards AI and automation, including their level of trust, acceptance,
and concerns about job displacement and privacy, is essential.
Recognizing the impact of AI on customer experiences, such as
improved personalization and convenience in online shopping, allows
businesses to align their strategies with consumer preferences.

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Technological advancements in AI algorithms, machine learning,
natural language processing, computer vision, and data analytics
provide new opportunities for e-commerce businesses. Assessing the
accessibility of these technologies for different types of e-commerce
enterprises is crucial in determining their suitability and potential for
integration.
Legally, complying with data protection and privacy regulations, such
as the GDPR, is important to ensure the ethical use of customer data
in AI-driven personalization and recommendation systems.
Understanding the legal implications, including intellectual
property rights, associated with utilizing AI algorithms and
automated decision-making in e-commerce is necessary to address
potential risks and legal challenges.
Lastly, considering the environmental impact of e-commerce
operations is important. Evaluating factors like energy consumption,
carbon emissions, and sustainability in AI-powered logistics and
supply chain management helps businesses align with eco-friendly
practices and meet consumer demands.

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Unleashing the Power of AI: E-commerce Processes
Optimization and Customer Behavior

I. E-commerce businesses processes and AI:

E-commerce businesses participate in a large range of business


processes such as product sourcing and selection, marketing, selling,
and servicing of products and services. These companies depend
completely on online shopping websites and internet-based
technologies for their marketing, finding products, processing
transactions, and helping customers. On the Internet, e-commerce
websites carry out activities like advertising, taking orders, processing
payments, and providing customer support. E-commerce also
includes business-related activities like suppliers and customers
accessing inventory information through a special network
(transaction processing), sales and customer service representatives
using the internet to access customer relationship
management(CRM) systems (customer service and support), and
customers working together through email and social media for
product development. (marketing/discovery)

(O'Brien and Marakas 2011).

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AI can do things that humans might find difficult, such as predicting
demand and managing supply chain processes . With AI, e-commerce
businesses can collect a lot of information about customers and use it
to offer high-quality services. Chatbots and messengers can also be
used to improve interactions between businesses and customers.

Automation processes can help eliminate redundancies in operations,


and AI can also provide automated responses to customer inquiries.

Experts have found that artificial intelligence (AI) can help e-


commerce businesses produce innovative ideas to satisfy customers'
needs and keep up with their changing preferences. (Kumar, T.; Trakru,
M. The Colossal Impact of Artificial Intelligence. (“Artificial Intelligence and
Machine Learning in the Context of E-commerce: A Literature Review”).

V.D. Soni is the author of the article titled "An Overview of Machine
Learning and Its Applications" she determined that AI assists e-
commerce platforms in overseeing and keeping track of their
customers. (Soni, V.D. International Journal of Trend in Scientific Research
and Development. Int. J. Trend Sci. Res. Dev. 2019).

However, there are some potential challenges and threats that need
to be addressed to make sure that AI is effective in meeting business
expectations.

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According to experts, AI has the ability to improve corporate
performance because it provides various benefits like faster
processing, lower costs, and a lower chance of human error. (Huang
and Rust 2018; Canhoto and Clear 2020).

As a result, we will explore several elements of how AI is having


a positive impact on various e-commerce processes:

a) Product sourcing and selection:


- The Harvard Business Review defines product sourcing as "the
process of determining optimal sources of supply in terms of
quality, price, and delivery, for a given commodity or service.”
(Harvard Business Publishing is an affiliate of Harvard Business School.)
- Product selection by business definition refers to the process
of identifying and choosing products to be offered by a business
based on its goals and objectives, target market, competition,
and industry trends. (Harvard Business Publishing is an affiliate of
Harvard Business School.)
AI can have a significant impact on the process of product
sourcing and selection by businesses. Here are a few ways:
a) Increased effectiveness: Businesses may evaluate items
more effectively since AI algorithms are capable of

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precisely and swiftly
analyzing large amounts of data from several sources.
b) Better decision-making: AI-powered systems can identify
the best product based on standards like quality, cost,
and accessibility. This can assist companies in selecting
and sourcing items with more knowledge.
c) Enhanced personalization: Based on consumer
preferences and past purchases, AI can assist
companies in personalizing their product offerings. Sales
can go up and customer satisfaction can go up.
d) Cost savings: Companies can reduce costs related to
human labor, mistakes, and inefficiencies by automating
the product procurement and selection process.

b) Website development and design:


-Web development is the process of creating and
maintaining websites. (“Types of Web Development Jobs ”)
(Collins COBUILD Advanced Learner’s Dictionary. Copyright ©
HarperCollins Publishers)
-Web design is the process of computing
the planning and creation of websites.
(Collins English Dictionary. Copyright © HarperCollins Publishers)
AI has made a big impact on website development and

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design. It has changed a
lot of things in this field. Here is some important ways AI
has made a difference:

• Personalization: AI can make websites more personal by


studying user data and adjusting the content and layout to
fit each user's preferences. This makes users more
engaged and happier.
• Chatbots and Virtual Assistants: AI-powered chatbots
and virtual assistants can help users on websites by
providing automated support and answering common
questions. These bots learn from interactions and get
better at helping over time.
• Design Assistance: AI can help designers by analyzing
trends and user preferences and giving suggestions for
visually pleasing and user-friendly designs. AI tools can
generate layout options, colors, and typography based on
specific requirements.
• Responsive Design: AI can help make websites work well
on different devices and screen sizes. It can adjust layouts,
images, and content automatically to make sure the site
looks good and works properly on any device.
• Data Analysis and Insights: AI can analyze lots of data
from website analytics and user feedback to give

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designers and developers useful information. This helps
them understand how users behave, find patterns, and
make decisions based on the data to improve the website.

c) Marketing and advertising:

Marketing is the activity, set of institutions, and processes


for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large.
(Official definition from the American Marketing Association, approved 2017).

Artificial Intelligence (AI) has had a profound impact on marketing,


revolutionizing the way businesses analyze data, engage with
customers, and make data-driven decisions. Here are some key areas
where AI has made an impact:

 Data Analysis and Insights: AI enables marketers to process


and analyze vast amounts of data quickly and efficiently. AI
algorithms can identify patterns, trends, and correlations in
customer behavior, preferences, and market dynamics. This
data-driven approach helps businesses gain valuable insights to
optimize marketing strategies and make informed decisions.
 Personalization: AI enables highly personalized marketing
experiences by leveraging customer data and AI algorithms.

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Marketers can use AI to segment customers, deliver targeted
messages, and provide personalized product recommendations,
offers, and content. This level of personalization enhances
customer engagement, increases conversion rates, and fosters
customer loyalty. (“AI-Enabled Workforce Engagement Solutions -
Personify”).

 Customer Relationship Management (CRM): AI-powered CRM


systems can provide valuable insights into customer
interactions, preferences, and purchase history. By analyzing
customer data, AI algorithms can help businesses identify the
most valuable customers, predict customer behavior, and
tailor marketing campaigns accordingly. AI-powered CRM
systems streamline customer communication and enhance
customer satisfaction.
 Chatbots and Virtual Assistants: AI-powered chatbots and
virtual assistants have become prevalent in marketing. These
bots provide instant customer support, answer inquiries, and
assist with product recommendations. AI algorithms enable
chatbots to understand natural language, learn from
interactions, and provide accurate and timely responses.
They help businesses improve customer service, reduce
response times, and handle a large volume of customer
inquiries efficiently.

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 Predictive Analytics and Lead Scoring: AI enables predictive
analytics by analyzing historical data and identifying patterns.
Marketers can use AI algorithms to forecast customer
behavior, predict purchase likelihood, and identify high-value
leads. AI- powered lead scoring systems help businesses
prioritize and target leads, increasing efficiency and conversion
rates.
 Advertising and Media Buying: AI algorithms enhance
advertising campaigns by optimizing targeting, bidding
strategies, and ad placements. AI-powered platforms can
analyze customer data and behavior to deliver personalized
ads across various channels, improving ad relevance and
effectiveness. AI also automates media buying processes,
optimizing budget allocation and campaign performance.
 Market Research and Competitive Analysis: AI-powered tools
and algorithms can automate market research, monitor
competitor activities, and analyze market trends. AI systems can
gather data from various sources, perform sentiment analysis,
and identify emerging market opportunities. This helps
marketers make data-driven decisions and stay ahead in the
competitive landscape.

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Summary:
As the studies have shown and as we covered earlier, we
cannot deny that Artificial intelligence has a positive and huge
impact on various e-commerce processes. In product sourcing
and selection, we discovered that AI algorithms can analyze
data effectively and help businesses make better decisions
about which products to offer. AI also enables personalization
based on customer preferences, leading to increased sales and
customer satisfaction. In website development and design, AI
enhances personalization by adjusting content and layout based
on user preferences. AI-powered chatbots and virtual assistants
provide automated support, and AI assists designers in
generating visually pleasing and user-friendly designs. AI also
helps create responsive websites that work well on different
devices. In marketing and advertising, AI facilitates data analysis
and insights, enabling marketers to make rational decisions.
Personalization is enhanced through AI algorithms, improving
customer engagement and loyalty. AI-powered CRM systems
enhance customer communication, and chatbots provide
instant customer support. Predictive analytics and lead scoring
help prioritize valuable leads, while AI optimizes advertising
campaigns and automates media buying processes. AI also
enhance in market research and competitive analysis, allowing
marketers to make data-driven decisions and stay competitive.

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II. Customer behavior and AI:

There have been some multiple understandings and considerations


of the concept of consumer behavior, and many definitions have
been represented by several researchers.
one of the key pioneers in the field of consumer behavior is Walter
Dill Scott, an American psychologist and marketing expert, made
significant contributions to the field of advertising and consumer
behavior and published a book in 1903 called "The Theory of
Advertising”. However, no specific definition of customer behavior
was given by Walter Dill Scott at that time.
Here are some interesting definitions expressed by some researchers:
 Some researchers have attempted to define consumer behavior

as the specific way and reason people choose to purchase


certain products or services. (Bergadaa & Faure, 1995; Esso & Dibb,
2004)“The concept of consumer behavior : definitions”)

 For the researcher Diop, Consumer behavior is an attitude


adopted by individuals who consume a given product or
service. (Diop 2004)
 Some other researchers have proposed that consumer

behavior relates to the attitudes, values, and actions displayed


from a perspective of consumption. (Agarwala, Mishra, and Singh
(2018) ; Nassè 2021).

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As such, there is not a quite common definition of this concept.
However, consumer behavior typically revolves around how
individuals perceive, adopt habits, lead lifestyles, hold attitudes,
and engage in practices related to their consumption.
Consumer behavior can be described as the way people
evaluate, select, buy, repeatedly purchase, use, and seek ideas,
products, and services to fulfill their needs and desires.
AI has a substantial influence on how we understand and
analyze customer behavior. With the help of AI, we can gather
and process vast amounts of data to gain insights into customer
preferences, motivations, and patterns of behavior.
Many studies were conducted by researchers to discuss that AI
can lead to changes in customer behavior.
We will explore some studies:

a. Gao, L., Hu, Y., & Zhang, J. (2020). Artificial


intelligence and e-commerce: A systematic review
and future research agenda. Electronic Commerce
Research and Applications, 40, 100920.

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-This study conducted a
systematic review of the literature on AI and e-commerce, and
identified several ways in which AI can change customer behavior.
For example, AI can personalize search results and product
recommendations, which can affect the way that customers search
for products and make purchasing decisions. The study also
suggested that AI can improve the speed and accuracy of customer
service interactions, which can affect customer satisfaction and
loyalty. (Gao, L., Hu, Y., & Zhang, J. (2020). Artificial intelligence and e-
commerce)

b. Tan, C., Chen, M., & Chen, Y. (2019). The impact of


artificial intelligence on e-commerce. Journal of
Business Research, 98, 365-380.

-This study investigated the impact of AI on e-commerce using a


survey of Chinese consumers. The study found that AI can improve
the efficiency and convenience of online shopping, which can affect
the way that customers browse websites and make purchasing
decisions. The study also suggested that AI can improve the accuracy
and relevance of search results and product recommendations, which
can affect the way that customers search for products.(Tan, C., Chen,
M., & Chen, Y. (2019). The impact of artificial intelligence on e-commerce)

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c. Yap, M. H., & Khong, K. W. (2021). The effects of
artificial intelligence (AI) on e-commerce: A
literature review. Journal of Retailing and
Consumer Services, 60, 102479.

-This study conducted a literature review of the impact of AI on e-


commerce, and identified several ways in which AI can change
customer behavior. For example, AI can use natural language
processing and image recognition to improve the accuracy and
relevance of search results and product recommendations, which can
affect the way that customers search for products. The study also
suggested that AI can improve the user experience by enabling more
natural and intuitive interactions with customers.

According to experts and these studies, AI can have a significant


impact on customer behavior in, affecting the way that customers
search for products, browse websites, and make purchasing
decisions. (Yap, M. H., & Khong, K. W. (2021). The effects of artificial
intelligence (AI) on e-commerce)

As a result, we will explore several elements of how AI is having a


positive impact on customer behavior and attitude:

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 Customer Loyalty: AI can affect customer loyalty in e-
commerce. Some studies have found that personalized
recommendations generated by AI can increase customer
loyalty and lead to repeat purchases (Zhang et al., 2021).
Other studies have suggested that AI-powered chatbots and
virtual assistants can improve customer satisfaction and reduce
the number of people who stop doing business with a
company. (Li et al., 2021).
 Trust: Trust is a key factor in e-commerce, and AI can affect
customer trust in several ways. Some research has shown that
people are more likely to trust recommendations made by AI if
they are easy to understand and make sense. (Li et al., 2020).
However, Other studies have suggested that if customers think
that the AI is being unfair or trying to trick them, they may not
trust it as much. (Lambrecht and Tucker, 2019).
 Purchase Intention: AI can also influence customer purchase
intention. Some studies have found that customers are more
likely to make a purchase when they receive personalized
recommendations from an AI system (Chen et al., 2020). Other
studies have suggested that the perceived accuracy of AI
recommendations can also affect purchase intention (Zhang et
al., 2021).

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 Customer Experience : According to a study by Gartner the
use of AI technologies such as machine learning,
understanding and natural-language processing can help
analyze customer sentiment and customer feedback faster
and more accurately than humans. (Gartner, 2020).This
suggests that AI has the
potential to be a valuable tool for retailers to enhance customer
experience and stay competitive. (Newman, 2019).

 Customer satisfaction: One study found that 64% of customers


value speed and convenience when seeking customer support.
AI-powered chatbots and other tools can provide quick and
efficient support, increasing customer satisfaction. Meanwhile
customers also value Availability, AI-powered tools can
provide round-the-clock support, making it more convenient
for customers to get help when they need it.

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Summary:

All the studies and factors that we mentioned below have


proven to us AI can have an enormous and positive impact on
customer behavior and attitude in various ways.
Firstly, personalized recommendations generated by AI can
increase customer loyalty and encourage repeat purchases. AI-
powered chatbots and virtual assistants also improve customer
satisfaction and reduce the number of customers who stop
doing business with a company. Trust is crucial in e-commerce,
and AI can influence customer trust depending on how
understandable and fair its recommendations are. AI can also
affect customer purchase intention by providing personalized
recommendations and perceived accuracy. In terms of
customer experience, AI technologies like machine learning and
natural language processing can analyze customer sentiment
and feedback faster and more accurately than humans. This
enhances customer experience and helps retailers stay
competitive. Lastly, AI-powered chatbots and tools offer quick
and efficient support, increasing customer satisfaction by
providing speed, convenience, and round-the-clock availability.

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Methodology
 Quantitative approach:

Quantitative research refers to the process of collecting and studying


numerical data. It helps find patterns, predict outcomes, test cause-
and-effect relationships, and make conclusions about bigger groups
of people. The opposite of qualitative research, which refers to the
process of collecting and interpreting non-numerical data like text,
videos, or audio.

In this case, I will be using the quantitative approach to see the


impact of ai on customer behavior and preferences in e-commerce to
the consumer’s perspective. And if customers are preferring the
human interaction within a business or AI automation.

Compared to the qualitative method, this approach has an advantage


because it includes a wider range of customers as a sample. As a
result, it can offer insights into how artificial intelligence affects
customer behavior and preferences in e-commerce.

The study then presents a quantitative analysis based on a survey of


online customers to investigate the impact of AI on customer
behavior and preferences and to give us a deeper understanding of
the impact of AI on both customer behavior and e-commerce
businesses.

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Data collection and analysis
As we discussed earlier, our data collection will be done through a
survey on Google Forms that we will share through social media and
our surroundings. Surveys are a useful method to gather information
across different fields, allowing us to understand the characteristics,
interests, thoughts, or opinions of a specific group of people. They
are a favorable option for obtaining this kind of data . Our questions
in the survey will aim to collect information such as age, gender, AI
awareness and AI automation . We will start by sharing our surveys in
WhatsApp groups, Facebook groups, School Networks…

The survey went on for a period of 15 days. Initially, a few days were
dedicated to creating the questionnaire and gathering information
from the participants, while the remaining days were focused on
examining and documenting the collected data.

Firstly, we are going to target our surroundings such as friends,


family, and colleagues. Then we will try to expand our reach by kindly
asking our existing respondents to share this survey with their social
environment. Our respondents will not be obliged to enter their
email or phone number, in order to keep the anonymity and the
privacy of some personal information that could embarrass the
respondents to share publicly. Also, it would reassure our
respondents that their information will not be used to target them

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later or lead them into

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some sales funnels. Because our only use of this information is purely
academic.

After collecting the information of our respondents, we will represent


and organize them into graphics and charts, in order to have a clear
understanding of this quantified results and to be easy for us to make
Some general conclusions that will help us in responding to our thesis
question.

Survey
The survey was conducted exclusively online to ensure its reach to
social media users and gather a large number of suitable responses.
Facebook and Instagram were selected as the main platforms for
distributing the survey because they have the largest user bases.
Within a short period, the survey received a significant increase in
responses, largely due to active online communities on Facebook and
WhatsApp. Moreover, to target a diverse group beyond Moroccans,
the survey was conducted in English to maximize the number of
participants.

We chose to use Google Forms for our survey for its simplicity and its
professional aspect. Also, the use of this method will help us collect
data quickly and safely, due to the facility of sharing and responding
to the survey. Also, Google Forms offers us the possibility to quickly

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summarize our responses to organized data that are presented in
graphs and charts that will help us a lot in the final question of our
thesis. Another advantage that we could consider is the aspect of
trust that is important to consider as nowadays many people are
afraid to share their information on platforms that may use their data
in malicious actions. However, with the use of Google Forms, our
respondents will not be suspicious about sharing their information on
Google Forms as it is a reputable and trustworthy organization.

Survey questions
The survey is divided into three main sections. The first part focuses
on the overall usage of artificial intelligence in businesses. The
second part explores people's preferences regarding human
interaction versus AI automation. Lastly, the third part addresses
concerns related to confidentiality and privacy.

In the first section, the questions are organized in a logical sequence


known as a funnel. It begins with a general question about the
influence of AI on e-commerce businesses, followed by inquiries
about the effects of AI on customer behavior. The same logical
progression is followed in the second section as well.

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Results and findings
After collecting and analyzing the survey data, we discovered that our
predictions about the characteristics of the respondents were largely
accurate. The majority of our survey participants were Moroccans,
accounting for an overwhelming 95% of the total sample size and
only 5% represents European and other participants . This finding
highlights the importance of understanding the preferences and
behaviors of this particular demographic.

Interestingly, within the Moroccan population, there was a


noticeable age distribution among the respondents. Approximately
78% of the participants fell within the age range of 17 to 25 years old,
indicating a significant representation of the younger generation. On
the other hand, individuals aged between 28 and 33 years old
constituted around 12% of the sample, while only 10% belonged to
the older community between 42 and 66 years old.

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One observation from the survey was that the younger generation
exhibited a higher level of familiarity with the term "artificial
intelligence" compared to other age groups. It was found that a
significant portion of the respondents aged 18 to 25 are more often
to be familiar with the term artificial intelligence, suggesting a
growing awareness and interest in this field among the youth.
However, it was surprising to note that a considerable number of
participants from other age categories reported never having heard
of artificial intelligence before.

In addition to the demographic characteristics mentioned earlier, our


survey data also revealed a significant diversity in terms of gender
representation among the respondents. The results indicated that
54% of the survey participants identified as men, while 46% identified
as women. The equal representation of genders within our survey
sample presents a valuable chance to conduct a thorough analysis
and derive stronger, more conclusive findings.
The presence of gender diversity in our survey responses can
contribute to confirming the theories we initially proposed regarding
the characteristics and perceptions of the population towards
artificial intelligence.

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By examining the data through a gender diversification, we can
identify potential variations in attitudes, awareness levels, and
preferences between men and women.

The initial question in our survey was designed to assess the extent
of awareness regarding the integration of artificial intelligence
technologies in the businesses that we encounter in our daily
interactions. This question aimed to reveal respondents' knowledge
and understanding of how AI is being utilized in various industries
and sectors. By exploring their awareness levels, we can gain valuable
insights into the general perception and familiarity with AI in the
context of everyday business operations.
Based on the survey results, it was revealed that a significant
majority of our respondents, specifically 87%, have a clear
understanding of the integration of AI technologies in the businesses
that we interact with. This finding highlights a high level of awareness
among a substantial portion of the participants regarding the
presence and significance of AI in various industries.

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However, it is worth noting that there are still individuals within our
survey sample who lack awareness about businesses utilizing AI
technologies. These respondents hold the belief that all the efforts
made by businesses are solely attributed to human endeavors,
without considering the role of AI in enhancing efficiency, decision-
making, and overall operations.

The second question in our survey was specifically crafted to reveal


the inclination of individuals towards embracing greater automation
facilitated by AI or emphasizing human interaction in their
preferences.
The scope of this question encompasses the assessment of
individuals' preferences regarding the level of automation facilitated
by AI in contrast to their satisfaction with the current state of human
interaction within the business context. By asking this question, by
asking this question, the survey hopes to understand people's
opinions on using advanced automation technologies and how much
they value human involvement in business. It wants to see if people
think there should be a balance between automation and human
interaction thereby providing insights into their perspectives on the
future of business processes.

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This question elicits a diverse range of responses, providing our
respondents with a variety of options to express their preferences.
Based on the survey results, we have observed distinct patterns in
answers. Interestingly, 44% of participants indicated a preference for
a balanced approach, expressing their desire for both increased
automations facilitated by AI and the continued significance of
human interaction in businesses. Meanwhile, 23% of responders
leaned towards embracing greater automation provided by AI,
emphasizing its potential benefits for businesses. On the other hand,
an equal proportion of 23% staunchly affirmed their unwavering
preference for human interaction, underscoring its inherent value in
the business context. These results highlight the perspectives of our
survey participants, displaying the diverse attitudes towards the role
of automation and human interaction in shaping the future of
businesses.

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The third question in
our survey aimed to uncover whether our respondents would be
more inclined to select a business that provides a seamless
combination of AI automation and human interaction, or if they
would prefer a company that offers only one of these aspects.

This question aimed to understand the average of our responders’


preferences for a business model that combines the efficiency of AI
technology with the personalized touch of human interaction,
compared to a model that relies exclusively on one of these
elements. The purpose was to understand whether they favored a
balanced approach that leverages both AI and human interaction or
if they leaned towards a model that solely relies on either of these
components.

Regarding the survey results, we observed a notable trend where


85% of respondents expressed a preference for a business that
provides a seamless combination of both AI automation and human
interaction. This majority indicated a strong inclination towards a
business model that leverages the benefits of AI technology while
also valuing the personalized touch and assistance offered by human
interaction. Conversely, a mere 15% of respondents indicated a
preference for a business that offers only one side, implying a
significantly lower level of interest in a model that only relies on
either AI automation or human interaction.

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The purpose of the fourth question is to uncover the opinions of our
respondents regarding specific tasks or processes where they believe
AI automation would be more efficient and preferable compared to
human interaction.
This question aimed to gather insights into the areas where
respondents perceive AI automation to have a distinct advantage
over human interaction in terms of efficiency and effectiveness. By
understanding their perspectives, we can gain valuable insights into
the tasks or processes where the integration of AI technology can
bring significant benefits and improve overall business operations.
Our survey results reveal a diverse range of answers from our
respondents. Among them, 64% believe that AI will be preferred in
certain tasks, acknowledging the efficiency it can bring. However,
they also recognize that there are tasks that necessitate human
interaction, where the human touch is considered essential. On the
other hand, 23% of respondents firmly hold the view that AI will be
necessary in specific tasks, implying that they see AI as indispensable
in those areas. Interestingly, 13% of our responders place greater
trust in human handling of tasks compared to AI, highlighting their
preference for the human element over automation.

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These varied responses demonstrate the nuanced perspectives and
considerations individuals have when evaluating the role of AI and
human interaction in specific tasks and processes.

The fifth and final question was designed to measure the level of
trust and comfortability our respondents have in sharing personal
information with AI-powered systems, as opposed to discussing it
with human representatives.
This question aimed to measure their preference for either
interacting with AI-powered systems, which may offer convenience
and efficiency but involve sharing personal data, or engaging with
human representatives, which may provide a sense of trust and
confidentiality but might be less automated. By understanding their
attitudes towards data privacy and their comfort level with AI
systems, we can gain insights into their willingness to share
personnel information and their preferred mode of communication
in sensitive matters.

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The results of the fifth question were remarkably close, indicating a
nearly equal split among the respondents. It is noteworthy that 60%
of participants expressed a strong level of trust in AI-powered
systems, displaying a willingness to share personal information with
these automated technologies. This majority demonstrated a belief in
the security and reliability of AI systems when it comes to handling
their personal data. On the other hand, 40% of respondents
preferred human interaction, suggesting a higher level of comfort in
discussing and sharing personal information with human
representatives. This finding highlights the persistent preference for
the human element in matters involving sensitive data, as it provides
a sense of trust, confidentiality, and attention. The close distribution
of responses indicates a significant divide among individuals when it
comes to trusting AI systems with their personal information,
emphasizing the importance of addressing data privacy concerns in
AI-powered interactions.

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Conclusion
In conclusion, this dissertation explored the rich history of artificial
intelligence (AI) and investigated its profound impact on e-commerce
processes as well as customer behavior. Through a comprehensive
examination of the evolution of AI technologies, we witnessed their
transformative influence on the way e-commerce businesses
operate. AI has revolutionized various processes, enhancing
efficiency, personalization, decision-making, and overall customer
experience. By leveraging AI algorithms, businesses have been able
to optimize inventory management, logistics, and improve marketing
strategies, resulting in increased operational efficiency and cost-
effectiveness.

Moreover, the integration of AI has significantly influenced customer


behavior in e-commerce. AI-powered recommendation systems and
chatbots have enhanced the overall customer journey, providing
personalized product recommendations, resolving queries promptly,
and delivering tailored customer service experiences. This has led to
improved customer satisfaction, higher engagement levels, and
increased conversion rates. However, it is important to note that
while AI has brought about numerous benefits, there are also
concerns surrounding data privacy, ethical implications, and potential
biases inherent in AI algorithms, which warrant careful consideration
and regulatory measures.

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As we move forward, the potential of AI in the e-commerce industry
remains vast. With advancements in machine learning, natural
language processing, and computer vision, AI technologies will
continue to evolve and adjust

e-commerce processes. It is crucial for businesses to adapt to these


changes, strike a balance between automation and human
interaction, and prioritize the ethical and responsible use of AI. By
harnessing the power of AI while maintaining a customer-centric
approach, e-commerce businesses can thrive in an increasingly
competitive landscape and provide exceptional experiences that will
lead to the evolving needs and preferences of consumers.

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Limitation and further studies

Limitations of the dissertation include time constraints, as there is a


lot to cover in the history of artificial intelligence and its impact on e-
commerce. It is also challenging to find reliable and up-to-date data
on how AI affects e-commerce processes and customer behavior. The
findings may not apply universally as the impact of AI can vary across
different industries and regions. Limitations of the dissertation
include time constraints, as there is a lot to cover in the history of
artificial intelligence and its impact on e-commerce. It is also
challenging to find reliable and up-to-date data on how AI affects e-
commerce processes and customer behavior. The findings may not
apply universally as the impact of AI can vary across different
industries and regions.

A major limitation of the study is the small sample size. With only 40
respondents participating in the survey, it was challenging to identify
significant relationships in the data. Typically, statistical tests require
a larger sample size to ensure a representative representation of the
overall population. Due to the limited number of participants, the
findings may not be as generalizable or conclusive as they would be
with a larger sample size.

Direction Académique Rabat Business


School Université Internationale de 6
Further studies could compare different e-commerce businesses
using AI to understand the varying impacts on processes and
customer behavior. Exploring the ethical implications of AI in e-
commerce, such as biases and privacy concerns, would be valuable.
Long-term effects of AI on e-commerce could be studied to track
trends and assess sustainability. Examining user experience and
satisfaction with AI-powered e-commerce systems would provide
insights into user perceptions. Lastly, studying the specific impact of
AI on small and medium-sized enterprises in the e-commerce sector
would be beneficial.

By addressing these limitations and conducting more research, we


can gain a better understanding of the history and impact of AI on e-
commerce processes and customer behavior.

Direction Académique Rabat Business


School Université Internationale de 6
References
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Direction Académique Rabat Business


School Université Internationale de 6
 Konstan, J. A., Riedl, J., & Harpstead, E. (2000). Recommender

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 McCarthy, J., Minsky, M. L., Rochester, N., & Shannon, C.

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intelligence on e-commerce. Journal of Business Research,

98, 365-380.

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School Université Internationale de 6
 Yap, M. H., & Khong, K. W. (2021). The effects of artificial

intelligence (AI) on e-commerce: A literature review. Journal

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 Yun, Z., Li, H., Lai, K., & Wong, Y. (2019). The impact of

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Direction Académique Rabat Business


School Université Internationale de 6
Appendix:

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Direction Académique Rabat Business
School Université Internationale de 6
The survey url:

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School Université Internationale de 6
Meeting file:

Direction Académique Rabat Business


School Université Internationale de 6

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