Impact of Artificial Intelligence on Customer Loyalty in the Indian Retail Industry

Abstract

Artificial intelligence has led to the automation of traditional manufacturing and industrial processes and practices. The use of artificial intelligence improves customer experience and it's a proven fact that consumers who enjoy their shopping experience end up making more purchases. Retailing is one of the sectors that has seen drastic changes after the inception of artificial intelligence. This transformation can be seen in the supermarkets like Amazon Go store, Alibaba Hema store, IKEA, and many others. The objective of this chapter is to study the impact of artificial intelligence on Indian retail customers. Primary survey was conducted for the study and it was found that retail organizations emphasizing store design/layout and adoption of technological innovation to ease the consumer buying process were more successful in creating loyal customers for their stores. It can be concluded that India is still lacking in the adoption of IT systems in the retail sector and serious efforts are required in this direction.