QUANTIFYING THE IMPACT OF ARTIFICIAL INTELLIGENCE (AI) APPLICATION ON INFORMATION TECHNOLOGY (IT) RETAIL BUSINESS

Abstract

This study investigates the impact of Customer Satisfaction, Operational Efficiency, and Retail IT AI Applications on Retail Financial Performance. The findings reveal a negligible and statistically insignificant negative effect of Customer Satisfaction on financial outcomes, challenging conventional wisdom regarding its primary role in driving retail success. In contrast, Operational Efficiency emerges as a critical determinant of financial performance, with significant evidence supporting the notion that operational enhancements can lead to substantial financial gains. Additionally, the study underscores the pivotal role of Retail IT AI Applications, demonstrating their significant positive impact on financial performance. The use of AI in areas like predictive analytics, personalized marketing, and efficient inventory management not only represents a trend but is identified as a fundamental shift necessary for maintaining competitiveness and achieving financial robustness in the retail sector. These insights contribute to a nuanced understanding of the interplay between technology, operational strategies, customer engagement, and financial performance, offering a roadmap for retail businesses aiming for sustainable growth and profitability. The study provides valuable implications for retail management, emphasizing the importance of strategic investment in technology and process optimization, and lays the groundwork for future research in this dynamic field.