Topic

Artificial Intelligence And Its Impact On The

Retail Industry
 Acknowledgment
I would like to express my sincere gratitude to Prof GP Dang Sir & everyone who supported
me throughout the completion of this project on “Artificial Intelligence And Its Impact On
The Retail Industry”

First and foremost, I extend my heartfelt thanks to , whose invaluable guidance,

encouragement, and constructive feedback helped me throughout this research. Their
expertise and continuous support played a crucial role in the successful completion of this
project.

I am also grateful to D.A.V (P.G.) COLLEGE DEHRADUN for providing the necessary
resources and a conducive environment for conducting this study.

I would like to extend my special thanks to my family and friends for their moral support,
patience, and encouragement throughout the project’s development.

Finally, I acknowledge the assistance of all authors, researchers, and online resources whose
work and insights helped enhance the quality of this research.

Thank you all.

Manish Singh Sajwan

B.Com V Semester
D.A.V (P.G.) COLLEGE DEHRADUN
 Certificate
This is to certify that

Manish Singh Sajwan, a student of B.Com V Semester at D.A.V (P.G.) COLLEGE

DEHRADUN, has successfully completed the project titled “Artificial Intelligence And Its
Impact On The Retail Industry” as part of the course requirements for B.Com during the
academic year 2022-2025.

The project has been conducted under the guidance and supervision of Prof GP Dang. It
reflects the student’s original work, research, and dedication toward understanding the
subject.

We commend the efforts put forth by the student in completing this project with sincerity and
diligence.

__________________________
Prof GP Dang

HEAD AND DEAN

Department of commerce

D.A.V. (PG) COLLEGE DEHRADUN

__________________________
Date: ________
Place: ________
 CONTENTS
Chapters Content

Chapter 1 Introduction
Chapter 2 Review Of Literature
Chapter 3 Industrial & Company Profile
Chapter 4 Data Analysis & Interpretation
Chapter 5 Findings, Suggestions & Conclusion
Bibliography
Annexure
 INTRODUCTION

Artificial Intelligence (AI) has had a significant impact on many industries, and e-commerce
is no exception. In recent years, AI has become increasingly integrated into the world of e -
commerce, providing online retailers with new ways to engage with customers, streamline
their operations, and improve their overall performance. One of the most significant ways that
AI is influencing e-commerce is through personalised shopping experiences. AI algorithms
are able to analyse vast amounts of data on a customer's browsing and purchase history, as
well as their preferences and behaviours, to deliver tailored recommendations and product
suggestions. This can help retailers to build stronger relationships with their customers,
increase sales, and improve customer satisfaction. AI can help e-commerce businesses in
many ways, including personalised recommendations, chatbots, predictive analytics, and
more AI is also being used to optimise product search and discovery. With Natural Language
Processing (NLP) and computer vision, AI can analyse images, text, and voice queries to
provide more accurate and relevant search results. This helps customers find the products
they are looking for more quickly and easily, while also increasing the chances of upselling
and cross-selling. This not only improves the customer experience but can also increase sales
and revenue for the business. Another area where AI is making an impact on e-commerce is
supply chain management. By using machine learning algorithms to analyse and predict
demand, retailers can optimise their inventory and reduce waste. This can lead to significant
cost savings, as well as improvements in product availability and fulfilment times.

Finally, AI is being used to enhance fraud detection and prevention in e-commerce. By

analysing patterns in customer behaviour and transaction data, AI algorithms can identify and
flag suspicious activity, reducing the risk of fraud and protecting both retailers and customers.
Overall, the influence of AI on e-commerce is expected to continue to grow in the coming
years, as retailers increasingly recognize the benefits of leveraging AI technologies to drive
sales and improve their operations.

Chatbots powered by AI are also becoming more common in e-commerce, enabling

businesses to provide instant support to their customers. Chatbots can help with tasks such as
answering questions, providing product recommendations, and even processing orders.
Predictive analytics is another area where AI is making a big impact in e-commerce.
Predictive analytics uses machine learning algorithms to analyse customer behaviour and
predict future
trends. This can help businesses anticipate customer needs and adjust their offerings
accordingly.
Overall, AI is transforming the e-commerce industry, providing businesses with new
opportunities to improve their operations and enhance the customer experience. As AI
technology continues to evolve, we can expect even more significant changes in the future.

Our research is primarily focused on how Ajio and Myntra, two e-commerce websites, have
been impacted by artificial intelligence. This study also describes the many artificial
intelligence strategies that are being used in e-commerce, with examples from Ajio and
Myntra.

ARTIFICIAL INTELLIGENCE

Artificial Intelligence (AI) is a branch of computer science that focuses on creating machines
that can perform tasks that normally require human intelligence. It involves the development
of algorithms and systems that enable machines to perform tasks such as speech recognition,
decision making, problem-solving, and visual perception.

Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are
programmed to perform tasks that typically require human intelligence, such as learning,
reasoning, problem-solving, perception, and language understanding. AI involves the
development of computer programs and algorithms that can perform tasks that would
typically require human intelligence, such as visual perception, speech recognition, decision-
making, and natural language processing. Machine learning, deep learning, and neural
networks are some of the techniques used in AI to enable computers to learn and improve
performance over time. AI has many applications, including in industries such as healthcare,
finance, transportation, and e-commerce.

AI is based on the idea of creating intelligent machines that can think, reason, and learn like
humans. It involves the use of various technologies such as machine learning, natural
language processing, computer vision, and robotics to create intelligent systems.
Machine learning is a subset of AI that involves training machines to learn from data and
improve their performance over time. Natural language processing is another subset of AI
that enables machines to understand and interpret human language.

Overall, AI has the potential to transform many industries and is already being used in
various applications, including autonomous vehicles, virtual assistants, and predictive
analytics. As technology continues to evolve, we can expect AI to become even more
advanced and capable of performing more complex tasks.

E-COMMERCE

E-commerce, also known as electronic commerce, refers to the buying and selling of goods
or services over the internet. It involves online transactions between businesses and
consumers or between businesses. E-commerce can take place on various platforms, such as
online marketplaces, social media, or dedicated e-commerce websites. It allows businesses to
reach a wider audience and can provide customers with more convenience and access to a
wider range of products and services. E-commerce has become increasingly popular in recent
years, with more and more businesses shifting to online sales as a way to expand their reach
and grow their customer base.

It involves online transactions between businesses and consumers, or between two or more
businesses. E-commerce has become increasingly popular in recent years due to its
convenience and accessibility, allowing customers to shop from anywhere at any time.
Examples of e-commerce include online shopping, online banking, online auctions, and
online ticket booking. E-commerce businesses may operate through their own websites,
social media platforms, or online marketplaces such as Myntra, Ajio, Amazon, eBay, and
Alibaba. E- commerce has disrupted traditional brick-and-mortar retail, and it is expected to
continue to grow in the coming years, with the rise of mobile commerce, social commerce,
and other emerging trends.
SIGNIFICANCE OF THE STUDY

Artificial intelligence (AI) has had a significant impact on e-commerce, revolutionising the
way businesses operate and the way customers interact with online stores. Here are some of
the ways AI has influenced and impacted e-commerce:

Personalization: AI can be used to analyse customer behaviour, preferences, and purchase

history, allowing online stores to offer personalised recommendations and shopping
experiences.

Chatbots: AI-powered chatbots are used by online stores to provide customer support, answer
questions, and guide customers through the shopping process.

Search optimization: AI can analyse search data and help improve search results, making it
easier for customers to find what they are looking for.

Fraud detection: AI can help identify and prevent fraud, including credit card fraud and
identity theft, in real-time.

Inventory management: AI can help optimise inventory management by predicting demand,

identifying popular products, and automating order fulfilment.

Pricing optimization: AI can help businesses optimise pricing strategies by analysing market
data and predicting consumer behaviour.

Voice assistants: With the increasing popularity of voice assistants like Amazon's Alexa and
Google Assistant, AI is being used to enable voice-based shopping experiences.

Predictive Analytics: AI can analyse customer data to make predictions about their f uture
behaviours and purchases. This allows e-commerce companies to tailor their marketing
efforts and product offerings to maximise sales.
Supply Chain Optimization: AI can optimise supply chains by predicting demand, managing
inventory levels, and improving shipping logistics. This leads to lower costs and improved
efficiency.

Overall, the impact and influence of artificial intelligence on e-commerce are significant, and
it is expected to continue transforming the industry in the years to come.
AI has the potential to greatly improve the efficiency and effectiveness of e-commerce,
making it easier for businesses to provide personalised experiences and optimise their
operations while making it more convenient and enjoyable for customers to shop online.

From digital transformation and software-as-a-service to virtual reality and artificial

intelligence, technology keeps pushing the limits of what e-commerce can do. AI can help
today’s online retailers deliver an optimised customer experience on and off their e-
commerce websites by using collected business and customer data to make better business
decisions and more accurately predict the future. AI also plays a big role in helping you
automate the repetitive tasks that keep your online store functioning like product
recommendations, loyalty discounts, low-level support, and more. The research helps you
find the ways in which AI and e-commerce come together and their prompt outcome on
the consumers.

OBJECTIVES OF THE STUDY

1. To study the commercial impact of artificial intelligence in e-commerce

2. To assess the customer satisfaction level with e-commerce websites
3. To make a comparative study of Ajio and Myntra from an artificial intelligence perspective.

RESEARCH METHODOLOGY

The research was undertaken to make a comparative study on consumer perception towards
AJIO and MYNTRA on the basis of the impact and influence of AI in e-commerce. This
study was conducted in the Ernakulam district with a sample size of 170 participants.

In this study, the data is collected from both primary and secondary sources. Primary data are
those collected by the investigator himself for the first time and thus, they are original in
character. In this study, primary data was collected using the survey method or questionnaire
method and evaluating the feedback received. It is a google form we created that is sent to the
respondents. The success of this method depends on the proper drafting of questions.

Secondary data are those which have been collected by some other person for his purpose and
published. Secondary data was collected from different published sources such as articles and
websites.

SCOPE OF THE STUDY

Especially in the fashion and accessory industries, artificial intelligence (AI) has a huge
impact on the e-commerce sector. Some of the ways in which AI is used in e-commerce
include:

Personalization: AI algorithms can analyse customer data such as past purchases, browsing
history, and social media activity to provide personalised product recommendations, pricing,
and promotional offers. This can lead to higher customer satisfaction and increased sales.

Image recognition: AI technology can recognize and analyse images to identify products,
styles, and trends. In the fashion industry, this can be used to recommend similar products,
suggest complementary accessories, or even identify clothing items in customer photos.

Chatbots: AI-powered chatbots can provide customer service and support 24/7, answer
customer queries, and help with order tracking and returns. This improves the customer
experience and reduces customer support costs.

Inventory management: AI algorithms can analyse data on customer demand, weather

patterns, and other factors to optimise inventory levels and avoid stockouts. This helps
businesses to reduce inventory costs and improve sales.

Fraud prevention: AI-powered fraud detection systems can analyse customer behaviour
patterns and identify fraudulent activities, reducing the risk of fraud for e -commerce
businesses.
Customer service: AI-powered chatbots and virtual assistants can provide 24/7 support,
which can enhance the customer experience and reduce the workload for customer service
representatives. A study could examine how AI impacts customer service satisfactio n and
efficiency.

Competitiveness: AI can give e-commerce companies a competitive edge by enabling faster

and more accurate data analysis, prediction, and decision-making. A study could analyse the
impact of AI on market share, profitability, and growth.

In the fashion and accessory industry specifically, AI can also be used for virtual try -on
experiences, personalised styling recommendations, and trend analysis. AI algorithms can
analyse customer feedback on product reviews and social media posts to iden tify emerging
trends and help businesses to respond quickly to changing consumer preferences. The scope
of the study is to find out the influence and impact of artificial intelligence in e-commerce.
The study is only confined to the services provided by e-commerce businesses with the use of
AI and its imminent results from it. This also evaluates whether e-business websites, such as
Myntra and Ajio, two of India's most popular e-business websites, provide more useful
features for accomplishing usability procedures in much less time and with ease. A sincere
attempt has been made to include all the aspects relating to the study.

In conclusion, the scope of AI in e-commerce, particularly in the fashion and accessory

industry, is immense. From personalization to inventory management, and fraud prevention
to virtual try-ons, AI has the potential to revolutionise the way businesses interact with
customers and manage their operations.

LIMITATIONS OF THE STUDY

While studying the impact of AI on e-commerce can be valuable, there are also some
limitations and challenges to consider. Here are a few main ones:

Limited data availability: E-commerce companies often have large amounts of data, but
access to this data may be limited for researchers. Only limited data were available from the
websites
of Myntra and Ajio. This made it difficult to draw accurate conclusions about the impact of
AI on e-commerce.

Limited industry standards: There are no established industry standards for measuring the
impact of AI on e-commerce, making it challenging to compare results across different
studies.

Small sample sizes: Studies in this field may involve small sample sizes due to the cost and
complexity of data collection, which can limit the generalizability of the findings.

Ethical concerns: The use of AI in e-commerce raises ethical concerns such as data privacy,
bias, and the potential for job displacement. Researchers need to be aware of these issues and
address them appropriately.

Limited generalizability: Studies on AI in e-commerce are often specific to certain industries,

products, or platforms, and may not be generalizable to other contexts. In this project, we are
only focusing on Myntra and Ajio, this limits the usefulness of the research in informing
broader policy or practice.

Technical complexity: Studying AI in e-commerce requires a deep understanding of technical

concepts, such as machine learning, data mining, and natural language processing.
Researchers need to be well-versed in these areas to design and implement effective AI
systems.

Other minor limitations are:

1. Only trust is the confident and assured factor when it comes to the authenticity of the
information provided by the consumers.
2. Sudden changes in the market conditions which lead to a corresponding change in
consumer behaviour or present trends in the due course of the project will affect the
project.
3. Some biases may arise in the responses which cannot be ruled out fully.

Overall, while studying AI in e-commerce is an exciting and rapidly developing field,

researchers need to be aware of these limitations and challenges to ensure that their findings
are accurate, relevant, and ethical. In conclusion, while studying AI in e-commerce can be
valuable, researchers need to be aware of the limitations of their studies and ensure that they
are addressing ethical concerns, technical complexities, and data limitations. They also need to
consider the generalizability of their findings to other contexts.
 REVIEW OF LITERATURE

A review of the literature is the backbone of a study. It allows understanding of the varied
ways of perspectives, ideas, and knowledge, around different orientations of wisdom. A
better review of the literature provides an in-depth understanding of what we need to cover
under our studies or the significant strengths, which coordinate the areas of our studies. It is a
rare collection of different sources of knowledge, which shields the ignited mind to enlarge
its tracks of learning. The process of learning which galvanized through the reading and
analysis of information data from different perspectives.

A review of previous studies on the impact of artificial intelligence in e-commerce is

necessary for us to have a view of different scholars and reporters. The knowledge so
obtained will be useful to go in-depth and find out the unknown and unexplored areas. The
earlier studies made on Analysis of AI on E-commerce and related areas are briefly reviewed
here. Many authors have dealt extensively with the subject of artificial intelligence and e-
commerce. Hence the researcher has made an attempt to review the various studies on this
sub ject which are published in various journals, books, and reports.

Laith T Khrais stated in the project titled “Role of Artificial Intelligence In Shaping
Consumer Demand in E-Commerce (2020)” that the communication between a business
organization and consumers occurs through user-generated content on websites and social
media. The overview of this study provides the critical outline of key tenants of artificial
intelligence. This project has six main parts which are an introduction, a review of the
literature, a proposed method, a result, a discussion, and a conclusion. It also provides a
detailed discussion of the outcome of the research and its key observations regarding various
systems like opaque, interpretable, and comprehensible which help in enhancing decision-
making. These implications are very useful for further research in the future.

He also examines various artificial intelligence techniques like sentimental analysis and
opinion mining, deep learning, and machinelearning. It also looks into the artificial
intelligence perspective in the context of shaping the marketing strategies adopted by
businesses. For the research, word cloud analysis is being utilized. Data were collected from
two databases namely cognitive science society and neutral information processing system.
These collected data were
analysed through normalisation of the frequency of the explainability term, voyant analysis,
and concordance analyses.

The project titled “Applications of Artificial Intelligence in business management,

Ecommerce, and Finance”(2021) proposed by Harikumar Pallathadka, Edwin Hernan
Ramirez-Asis, Telmo Pablo Loli-Poma, Karthikeyan Kaliyaperumal, Randy Joy Magno
Ventayen and Mohd Naved have stated in their project that artificial intelligence has been
used not only in the e-commerce but also in financial industries to improve customer
experience, efficient supply chain management, operational efficiency, and mate size with the
main goal of designing standard, reliable product quality control methods and new ways of
reaching consumers with low cost. One of the most important AI techniques is machine
learning which is a new area of data mining that allows a computer program to grow
increasingly accurate in predicting outcomes without explicitly programming it. This machine
learning technique is divided into 2 types; supervised and unsupervised techniques Some of
the most common applications include sales growth and sales forecasting, profit
maximisation, inventory management, security, fraud detection, and portfolio management.
Other applications also include chatbox, image search, handling customer data,
recommendation system, credit scoring, etc.

Katarina Repkova Stofkova, Dominik Laitkep and Zuzana Stofkova delivered the project
titled “Shopping Behavior in the context of the digital economy (2022)”. The aim of this
paper is to present the results of primary research, processed by reducing the number of
attributes influencing purchasing behaviour using factor analysis. The target group of the
research was women who bought mostly online. The main objective of this paper is to
identify factors that influence the consumer buying process in conditions of the global market
and the results was analysed on the basis of the review of the theoretical part consisting of
professional contributions, books, and scientific articles. A comparison method is also used to
find the common elements of the analysis. The results of the factor analysis conducted on a
sample of 1324 women present interesting findings with respect to defined variables
depending on the factors affecting the buying behaviour of the surveyed target group. It also
revealed answers to
their hypothesis that is, women are more affected by advertising and online influencers
compared with offline advertising. It also confirmed that in today's modern age cash payment
moves to the background, in the case of Slovak customers.

The project “Artificial Intelligence In Business: From Research and Innovation To

Market Deployment (2020)” by Neha Soni, Enakshi Khular Sharma, Narotam Singh, and
Amita Kapoor delivers the answer to the question why every company wants to be an AI
company or wants to acquire AI companies? Are all other technologies slowly being replaced
with AI? The research was initiated by scanning a number of newsletters, ai magazines,
journal papers, conference articles, machine learning posts, annual reports of the companies,
press releases, stock market websites, online forums, and many other platforms to gather the
data required to help us in the investigation. The answers to these questions will help human
society to get prepared for future challenges. The present work illustrates the prominent
achievement and influential technological innovations in the field of AI. The analysis of the
top two hundred AI startups shows the influence of advanced research and innovation in AI
on the global market. It also uncovers the top AI industries that will generate more
opportunities in near future viz, business intelligence, health care, core AI, cyber security,
and marketing and sales. However, it also shows that AI technology is confined only to a few
regions of the world which creates an “AI divide”
 THEORETICAL FRAMEWORK

ARTIFICIAL INTELLIGENCE

Artificial intelligence is a field of science concerned with building computers and machines
that can reason, learn, and act in such a way that would normally require human intelligence
or that involves data whose scale exceeds what humans can analyse.
AI is a broad field that encompasses many different disciplines, including computer science,
data analytics and statistics, hardware and software engineering, linguistics, neuroscience,
and even philosophy and psychology.

On an operational level for business use, AI is a set of technologies that are based primarily
on machine learning and deep learning, used for data analytics, predictions and forecasting,
object categorization, natural language processing, recommendations, intelligent data
retrieval, and more.

Types of artificial intelligence

Artificial intelligence can be organised in several ways, depending on stages of development

or actions being performed.
For instance, the four stages of AI development are commonly recognized.

1. Reactive machines: Limited AI that only reacts to different kinds of stimuli based
on pre-programmed rules. Does not use memory and thus cannot learn with new
data.

2. Limited memory: Most modern AI is considered to have very limited memory. It

can use memory to improve over time by being trained with new data, typically
through an artificial neural network or another training model. Deep learning, a
subset of machine learning, is considered limited memory artificial intelligence.
 3. Theory of mind: Theory of mind AI does not currently exist, but research is
ongoing into its possibilities. It describes AI that can emulate the human mind
and has decision-making capabilities equal to that of a human, including
recognizing and remembering emotions and reacting in social situations as a
human would.

4. Self-aware: A step above the theory of mind AI, self-aware AI describes a

mythical machine that is aware of its own existence and has the intellectual and
emotional capabilities of a human. Like the theory of mind AI, self-aware AI does not
currently exist.

A more useful way of broadly categorizing types of artificial intelligence is by what the machine
can do. All of what we currently call artificial intelligence is considered artificial “narrow”
intelligence, in that it can perform only narrow sets of actions based on its programming and
training. For instance, an AI algorithm that is used for object classification will not be able to
perform natural language processing. Google Search is a form of narrow AI, as it is
predictive analytics, or virtual assistants.

Artificial General Intelligence (AGI) would be the ability of a machine to “sense, think, and act”
just like a human. AGI does not currently exist. The next level would be Artificial Super
Intelligence (ASI), in which the machine would be able to function in all ways superior to a
human.

E-COMMERCE

Electronic commerce (e-commerce) refers to companiesand individuals that buy and sell goods
and services over the Internet. E-commerce operates in different types of market segments
and can be conducted over computers, tablets, smartphones, and other smart devices. Nearly
every imaginable product and service is available through e-commercetransactions, including
books, music, plane tickets, and financial services such as stock investing and online
banking.
E-commerce has helped businesses (especially those with a narrow reach like small businesses)
gain access to and establish a wider market presence by providing cheaper and more efficient
distribution channels for their products or services. E-commerce has changed the way people
shop and consume products and services. More and more people are turning to their
computers
and smart devices to order goods, which can easily be delivered to their homes. As such, it
has disrupted the retail landscape.

What is an e-commerce website?

An e-commerce website is a digital storefront on the internet. It facilitates the transaction
between a buyer and seller. It is the virtual space where it showcases the products, and online
customers make their selections. This website acts as the product shelves, sales staff, and cash
register of the online business channel.
Businesses might create a branded store experience on a store like Amazon, Ajio, Myntra,
etc, build their own commerce site on a dedicated domain, or do it all for a multi-channel
approach.

E-commerce offers consumers the following advantages:

 Convenient for owners as revenue may be generated semi-passively

 Convenient for consumers looking to easily browse for specific products
 Greater earning potential due to no limitations on physical location (can sell to
anyone as long you can ship there)
 Reduced costs assuming that digital presence costs less than building,
insurance, taxes, and repairs.
 Greater marketing control including data extraction from customers, targeted
ads, and pop-up placement

But there are certain drawbacks that come with e-commerce sites, too. The disadvantages
include:

 Limited customer service opportunities as there are little to no face-to-face

opportunities
 Lacks instant gratification as customers must believe in a product before
seeing it in person
 Products cannot be seen or handled until delivered (can't try before they buy)
 Risk of a down website causing lost revenue or income.
 High reliance on shipping constraints which may be out of your control
 Higher competition due to lower barriers of entry and greater customer potential
 Difference between Traditional Commerce and E-commerce:
E-commerce is different from Traditional commerce in many ways from the types of services
they provide to the way they deal with customers.

Sl.No. TRADITIONAL COMMERCE E-COMMERCE

Traditional commerce refers to theE-commerce refers to the commercial

commercial transactions or exchange of transactions or exchange of
information, buying or selling information, buying or selling
products/services from person to person products/services electronically with
01. without the use of the internet. the help of the internet.

In traditional commerce, it is difficult to In e-commerce, it is easy to establish and

02. establish and maintain standard practices. maintain standard practices.

In e-commerce indirect interaction

In traditional commerce direct interaction between seller and buyer occurs
03. between the seller and buyer is present. using electronic media and the
internet.

Traditional commerce is carried out by face-E-commerce is carried out by the internet

to-face, telephone lines, or mail systems. or other network communication
04. technology.

In traditional commerce processing of In e-commerce processing of

05. transactions is manual. transactions is automatic.
 In traditional commerce delivery of goods In e-commerce delivery of goods
06. is instant. takes time.

Its accessibility is for a limited time in a Its accessibility is 24×7×365 means

07. day. round the clock.

Traditional commerce is done where the E-commerce is used to save valuable

08. digital network is not reachable. time and money.

Traditional commerce is an older method E-commerce is a newer concept of

of business style that comes under business style that comes under e-
09. traditional business. business.

Its resource focuses on the demand

10. Its resource focuses on the supply side. side.

In traditional commerce, customers can In e-commerce, customers can not

inspect products physically before inspect products physically before
11. purchase. purchase.

Its business scope is a limited physical Its business scope is worldwide as it is

12. area. done through a digital medium.

For customer support, and information For customer support, and

exchange there is no such uniform information exchange there exists a
13. platform. uniform platform.
 E-commerce does not take time to Retail takes time to find products,
show the product to customers, just sometimes it needs to ask the employee
11. search for the product and get the about the product.
product.

E-commerce faces global marketing

12. competition. Retail faces local marketing competition.

E-commerce is not time-consuming as Retail is time-consuming as searching

searching for products is easy, and for products sometimes takes time along
making transactions is easy only with making payments but product
13. arrival time depends. availing is so fast.

COMPARATIVE STUDY ANALYSIS

Comparative study analysis is the process of comparing items to one another and
distinguishing their similarities and differences. When a business wants to analyse an idea,
problem, theory, or question, conducting a comparative analysis allows it to better understand
the issue and form strategies in response.

A business might conduct this type of analysis to analyse things with obvious differences or
items with both differences and commonalities. Healthcare businesses, for example, may
conduct this analysis to compare two different types of medications. Other businesses might
conduct a comparative analysis to examine two different production processes to determine
which is more effective. Typically, a business conducts a comparative analysis to determine:
  The strategies of indirect and direct competitors

 The financial health of a business, including its investments and profit margins

 Accounting strategies, such as budgets

 How trends affect a target audience

 Emerging opportunities in technology, marketing, or related functions

It is important to conduct comparative analyses to gain a better understanding of a problem or

answer relevant questions. Here are the primary goals companies aim to achieve through the
comparison of data sets, documents, or processes:

1. Providing a frame of reference for data

A comparative analysis details how data or processes compare to one another and explains
how they relate. This provides context for the analysis so the differences and similarities in
the relationships between data sets are clear. This type of analysis might provide in -depth
data on each feature and provide historical data to make comparisonsabout how each feature
performs.

2. Narrowing focus

An effective comparative analysis also helps a company develop substantial and meaningful
reasons for conducting the comparison. The data a company gathers for a comparative
analysis that supports claims or arguments is not random but thoroughly researched evidence.
The reason for conducting an analysis might be to present conflicting arguments and examine
both sides or to prove or disprove an argument.

3. Thesis

The grounds for comparison anticipate the comparative nature of the thesis. As in any
argumentative paper, the thesis statement will convey the gist of the argument, which
necessarily follows from the frame of reference. But in a compare-and-contrast, the thesis
depends on how the two things have chosen to compare actually relate to one another.

4. Organisational Scheme
The introduction will include the frame of reference, grounds for comparison, and thesis.
There are two basic ways to organize the body of the paper;

 In text-by-text, discuss all of A, then all of B.

 In point-by-point, alternate points about A with comparable points about B.

5. Linking of A and B

All argumentative papers are required to link each point in the argument back to the thesis.
Without such links, the reader will be unable to see how new sections logically and
systematically advance the argument. In a compare-and-contrast, it is also necessary to make
links between A and B in the body of the essay if the paper is to hold together. To make these
links, use transitional expressions of comparison and contrast.

INDUSTRIAL PROFILE OF THE E-COMMERCE SECTOR IN

INDIA

In recent years India has experienced a boom in internet and smartphone penetration. The
number of internet connections in 2021 increased significantly to 830 million, driven by the
‘Digital India’ program. As of 31 October 2022, there are 1,143 million mobile connections
with 625 million urban and 518 million rural connections. The smartphone base has also
increased significantly and is expected to reach 1 billion by 2026. This has helped India’s
digital sector and it is expected to reach US$ 1 trillion by 2030. This rapid rise in in ternet
users and smartphone penetration coupled with rising incomes has assisted the growth of
India’s e- commerce sector. The e-commerce industry, both in India and across the world, has
witnessed exponential growth since the pandemic, with the rapid adoption and acceptance of
digitization across all segments. India’s e-commerce sector has transformed the way business
is done in India and has opened various segments of commerceranging from business-to-
business (B2B), direct-to-consumer (D2C), consumer-to-consumer (C2C) and consumer-to-
business (C2B). Major segments such as D2C and B2B have experienced immense growth in
recent years. India’s D2C market is expected to reach US$ 60 billion by FY27 and thus, the
e-commerce industry has grown faster in the last two years than it has in the previous two
decades. The India e-commerce market size is estimated to be USD 75 billion in 2022 and
has the potential
to expand to USD 111 billion by 2024 and USD 200 billion by 2026, with a compound
annual rate growth (CAGR) of 20 to 22 percent, as per a data released by IN Govern
Research Services. The overall e-commerce market is also expected to reach US$ 350 billion
by 2030.

The pandemic has changed the way a consumer interacts with or engages in online shopping,
which has grown in both complexity and scope. However, we can confidently state that
today’s ideal consumer is more educated and has a clear idea of what they want to buy, with
more mediums/channels, exposure/product discoverability, convenience, and personalized
experiences available to them.

Consumers are more than willing to make purchases from new channels or new brands that
may resonate with them due to a variety of factors such as increased convenience,
company/brand value, sustainability, or brand image/presence, among other positive factors
influencing their decision-making.

To remain competitive and identify new opportunities, the e-commerce industry must
constantly evolve while staying in sync with the latest emerging industry trends. Some of the
trends we anticipate in this sector in the coming year include:

 E-tailors prioritizing user experience and convenience above all

 Increased adoption of Artificial Intelligence (AI)

 Machine Learning (ML)

 Augmented Reality and Virtual Reality (AR-VR)

 Metaverse and web3-based technologies to improve e-commerce user experiences

 The continued growth of social commerce

 Increased adoption of an Omni channel approach

While some of these trends have already been seen to some extent in recent years, they may
become stronger, and more widespread in 2023. However, one of the most significant
ecosystem trends we anticipate in this space is the rise of the hybrid model of commerce,
which includes and emphasizes both offline and online/digital commerce.
Customers who were forced to make online purchases due to the pandemic are now returning
to their preferred offline modes. However, since they have already reaped the benefits of vast
product discoverability, easy and lucrative pricing access, and the ability to window-shop
from anywhere, they are now stuck in limbo. Consumers’ new expectations cannot be fully
met or delivered by offline or online modes of commerce.

This is where the ‘Hybrid Commerce’ model comes in as a game changer; it can be dubbed as
the right technology-enabled marketplace model for today’s rapidly evolving consumer habits
landscape. In short, hybrid commerce is essentially a marriage or convergence of the offline
and online shopping experiences, allowing the end-user to enjoy the best of both
worldswithout having to compromise on any benefits offered exclusively by either end. It is
worth noting that the hybrid model of commerce, which places technology at its heart, subtly
serves the needs and benefits all stakeholders in the ecosystem, namely the buyer, seller, and
e -marketplace brands.

Some other trends that can take place in the year 2023 can be seen as follows;

1. Technology and business growth

In the last few years, India has evolved and accepted technology with broad arms. Our tech -
friendly environment has been evident with speedy changes in gadgets, software, and virtual
reality, and in a few years, we have covered the path from no internet to 5G in no time.
Today, businesses are undergoing an evolution fuelled by technology that may be the pillar of
modern retailing. Virtual Reality (VR) is one technology that can give e-commerce
businesses a new life. It is one of the trends that is foreseen to attract more customers to invest
in e-commerce platforms.

2. E-Commerce growth via social media

Social media is the future for shopping and selling goods and services. In the coming time, it
can become one of the leading and only sources where people will shop from. Social media
platforms serve as a brand digital store through social commerce, allowing customers to
conduct their whole purchasing experience, from product research and discovery to payment,
everything on social media. With perfect functionality in the social media apps, such as
giving recommendations, customer reviews, and ratings, businesses can mark a massive profit
with this e-commerce trend in the coming years.
3. Showrooming

Customer satisfaction is a must, be it online or offline shopping. And to flourish the e-

commerce growth, businesses can build experience stores that consumers can visit to see the
products before shopping online. This e-commerce trend can make the customer brand
attached, and the visual convenience will be at a high peak. It is beneficial as customers can
take discounts and trust the services offered by the business platform after visiting the
showrooms or stores.

4. Shop online and collect offline

This e-commerce trend has been sustaining in the game for a while now. Consumers who use
the click-and-collect service option can also benefit from having no or very few additional
delivery costs. Businesses benefit from the customer experience, sales of additional products,
and effective return handling. Consider this trend as seamless buying and extreme growth in
the e-commerce sector, and businesses can see wonders happening.

5. Quick deliveries

Quick e-commerce states how consumers can expect delivery in 6 hours or a day after
ordering any good. This trend can put India in the leading markets of e-commerce with other
growing countries such as China, etc. Quick deliveries can lead to more orders resulting in the
overall growth of an e-commerce business. Perfecting the aspect of convenience is one
crucial booster to spreading business online. This trend can strengthen the face of many e -
commerce businesses if their logistics are quicker than their competitive companies.
 DATA ANALYSIS AND INTERPRETATION

TARGET GROUP
Table 4.1 Table showing the targeted age group

Age group Frequency %

Less than 17 4 2.3

18 to 21 120 70.6

22 to 25 20 11.8

25 and above 26 15.3

Total 170 100

[Source: Primary Data]

TARGET GROUP
Figure 4.1 Figure showing the target group

The study focuses on the age category of 18 to 30.

According to the chart,
 More than 70% belong to the age group of 18-21
 15.3% belongs to the category under the age of 25 and above
 11.8% belongs to the age group under 22 to 25 years
 Lastly, 2.3% belong to the age category of less than 17 years old
 GENDER
Table 4.2 Table showing the gender of the respondents

Gender Frequency %

Male 55 32.4

Female 113 66.5

Other 2 1.2

Prefer not to say 0 0

Total 170 100

[Source: Primary Data]

GENDER
Figure 4.2 Figure showing the gender of the respondents

As per the chart,

 More than 65% of the respondents come under the female gender category
 More than 30% of the respondents come under the male category.
 1.1% of the respondents prefer not to say their gender
 OCCUPATION PROFILE OF THE RESPONDENTS
Table 4.3 Table showing the occupation profile of the respondents

Occupation Frequency %

Student 128 75.3

Employee/ Professional 23 13.5

Homemaker 13 7.6

Other 6 3.5

Total 170 100

[Source: Primary Data]

OCCUPATION PROFILE OF THE RESPONDENTS

Figure 4.3 Figure showing the occupation profile of the respondents

The chart indicates that students comprise 75.3% of the respondents, followed by 13.5
% of professionals or employees, 7.6% are homemakers and 3.5% belong to other categories.
CATEGORISATION OF SHOPPING
Table 4.4 Table showing the categorisation of shopping

Category Frequency %

Online websites 71 41.8

Offline stores 99 58.2

Total 170 100

[Source: Primary Data]

CATEGORISATION OF SHOPPING
Figure 4.4 Figure showing the categorisation of shopping

According to the chart,

 More than half of the respondents make use of offline stores, and
 The rest make use of online stores websites.
 FREQUENCY OF VISITING AN ONLINE STORE WEBSITES
Table 4.5 Table showing the frequency of visiting an online store website

Frequency of visiting Frequency %

Once in a week 16 9.4

Once in two weeks 23 13.5

Once in a month 44 25.9

Occasionally 87 51.2

Total 170 100

[Source: Primary Data]

FREQUENCY OF VISITING AN ONLINE STORE WEBSITES

Figure 4.5 Figure showing the frequency of visiting an online store website

As per the chart, Online shopping is more frequently used by the respondents because it is more
convenient and easier to access. More than half of the respondents (51.2%) use it
occasionally, followed by 25.9% usage once a month, 13.5% and 9.4% of the respondents use
it once in two weeks and once a week respectively.
DIFFICULTIES OF ONLINE SHOPPING
Table 4.6 Table showing the difficulties of online shopping

Difficulty Frequency %

Yes 81 47.6

No 89 52.4

Total 170 100

[Source: Primary Data]

DIFFICULTIES OF ONLINE SHOPPING

Figure 4.6 Figure showing the difficulties of online shopping

According to the chart, most of the respondents (52.4%) have faced difficulties while shopping
online while the rest of the respondents (47.6%) do not face such difficulties.
SOURCE OF INFORMATION
Table 4.7 Table showing the source of Information

Source Frequency %

Online stores 104 61.2

Physical stores 66 38.6

Total 170 100

[Source: Primary Data]

SOURCE OF INFORMATION
Figure 4.7 Figure showing the source of Information

As per the chart, more than 60% of respondents find it easy to get information of all products
and services available to them from online stores, while the rest of them (38.8%) find it
difficult to get information on the products and services available to them for offline
stores.
 FINDINGS

The study was conducted with customers of Myntra and Ajio of Ernakulam district and it
aimed to measure the impact of Artificial Intelligence on sales and customer satisfaction. The
findings have been drawn from the analysis of the data collected. The data was collected by
distributing structured questionnaires among 170 respondents in the Ernakulam district. The
findings are done in the light of the objectives of the study.

1. The study reveals the shopping habits and the impact of artificial intelligence on e-
commerce, especially among the age group 18- 30.

2. Among the respondents, more than half of them were female.

3. Based on the occupation of the respondents, we found that the majority were students
and employees or professionals.

4. From the study we found that there is only a narrow variation between the number of
people customized from online websites and offline stores.

5. The analysis revealed that half of the respondents visit or use online websites for
shopping occasionally rather than once in a month.

6. It is found in the study that most of the people do not find much difficulty in online
shopping but there are also many who find it difficult too.

7. Majority of our respondents consider that online website provides them with source of
product information when compared to physical stores.
8. When it comes to the familiarity with the brands we have chosen, (Ajio and Myntra)
among our respondents, Myntra is more popular with a considerable margin compared to
Ajio.

9. More people are aware of all the product ranges of Myntra compared to Ajio.

10. When it specifically comes to Ajio, people tend to purchase more from their physical
outlet i.e., Reliance Trends and only a very few chose not to prefer the offline store over Ajio.

11. More than half of the respondents wished that Myntra had an offline version of it.

12. Regarding the ease of shopping through these websites, most of the respondents
opted that it is easy to operate in Myntra. But when it comes to Ajio, the most of them have
chosen a neutral opinion regarding the ease of shopping.

13. When it comes to the awareness of promotional activities of Ajio, this study reveals
that there is no wide variation but still majority of the respondents were not fully aware of it.

14. The study reveals that most of the respondents shop extra during the Myntra festival
season.

15. The respondents were neither fully aware nor unaware of the payment methods
offered to them by these two websites. Most of them show the option “somewhat”.

16. Out of 170 respondents, a large proportion were neither comfortable nor
uncomfortable with the after-sale offered by Ajio and Myntra. However, there are many
participants who were more comfortable with services provided by Myntra than Ajio.

17. In our study we understood that most of the participants have not returned their
products in Myntra and Ajio. However, there is not much variation among the responses for
returning and not returning their orders.
18. In this study, more than half of the participants did not face any difficulty during the
return process of Ajio and Myntra.

19. Our study reveals that most of the participants believe that Myntra displays more
personalised products through their filters, more so than Ajio.

20. Out of the respondents, a large proportion were having a neutral opinion about the
accessibility of these platforms but there are many who find it easy to access Ajio and
Myntra.

21. In this study we understood that more than half of the participants have not raised any
complaints or suggestions against Ajio and Myntra services.

22. Nevertheless, there are many difficulties faced in the services provided by these two
platforms like time lag, payment issues, and many more.

23. From this study it is realized that both Ajio and Myntra platforms offer proper
assistance and knowledge to the customers for achieving their goals in shopping. Moreover,
Myntra offers this assistance to the participants more than that Ajio.

24. From this study it is revealed that both Ajio and Myntra platforms allow users to
update the information after setting up the account. Moreover, Myntra offers this assistance to
the participants more than Ajio
 CONCLUSION

The purpose of the study “A Study Of The Impact Of Artificial Intelligence On E-Commerce
With Reference To Ajio and Myntra'' was to conduct a comparison between two leading
online shopping websites- Ajio and Myntra, on the basis of their sales operations and their
customer preference and satisfaction. We also imparted knowledge from the e-commerce
perspective and how artificial intelligence aides and influences their buying decision. We
conducted a survey with 170 random respondents from Ernakulam District regarding the
same.

Especially during the post covid era, the importance of ‘being online’ can be felt in almost all
areas of operations. When it comes to online shopping, its impact on society and customers
has grown over the years. From this study conducted we consider these 170 respondents as
part of the whole. We reached the conclusion that there is only a narrow variation between
customers who chose online and offline shopping. This means that both have equal
importance as a majority of the respondents do not face any difficulty while shopping online.
That is, though the respondents visit an offline store, they make use of all the online
alternatives available too. The study also revealed that only a small proportion faced minor
difficulties during the shipping process. Considering our references to Ajio and Myntra, the
study reveals that Myntra is more reliable to customers than Ajio regarding product ranges,
website display, filtering , etc. Many of them also consider Reliance Trends store more
accessible than Ajio. Respondents of the survey have also wished for an offline store from
Myntra.

From all the data collected and the inferences made, we can conclude that online shopping is
preferred to offline or traditional store shopping. Online services provided to the respondents
are more convenient to them and enables round the clock shopping. As technology continues
to advance, consumers will more likely use online shopping as it becomes easier and more
ingrained in their average lifestyle.
 SUGGESTIONS

 Measures to improve the promotional activities of these online websites under sales
and after-sale services like discounts, special offers, etc, to attract more young earning
customers.

 After-sale service centres can be included in each consumer hub to help them through
the delivery process, customer grievances, etc.

 Make sure that the exact product ordered is delivered. If a different product is
delivered or there is any damage, then they should ensure that it can be returned to get
the ordered one or a refund.

 Ensure that all payment methods are properly working and give out refunds in a
considerable time after enabling that option.

 Well-trained and expert technicians are needed for developing e-commerce.

 References and Bibliography
1. Khrais, L. T. (2020). Role of Artificial Intelligence in Shaping Consumer Demand in E-

Commerce. Cognitive Science Society and Neural Information Processing System.

2. Pallathadka, H., Ramirez-Asis, E. H., Loli-Poma, T. P., Kaliyaperumal, K., Ventayen, R. J. M., &

Naved, M. (2021). Applications of Artificial Intelligence in Business Management, E-Commerce,

and Finance.

3. Stofkova, K. R., Laitkep, D., & Stofkova, Z. (2022). Shopping Behavior in the Context of the

Digital Economy.

4. Soni, N., Sharma, E. K., Singh, N., & Kapoor, A. (2020). Artificial Intelligence in Business:

From Research and Innovation to Market Deployment.

5. IN Govern Research Services. (2022). E-commerce Market Trends and Statistics.

6. Myntra Official Website: www.myntra.com

7. Ajio Official Website: www.ajio.com

8. Articles and Reports on AI in E-commerce from:

o The Economic Times

o Business Standard

o Forbes India

9. Research Papers on AI and Consumer Behavior from Google Scholar and ResearchGate.

10. Secondary data from journals and periodicals related to AI, e-commerce, and customer behavior

analysis.