SCHOOL OF Western Sydney University VietnamASSIGNMENT COVER SHEET STUDENT DETAILS Student Student ID UNIT AND TUTORIAL DETAILS Unit Monday12pm-315pm and Thursday8am-11:15am Lecturer
Trang 1SCHOOL OF Western Sydney University Vietnam
ASSIGNMENT COVER SHEET
STUDENT DETAILS
Student
Student ID
UNIT AND TUTORIAL DETAILS
Unit
Monday(12pm-315pm) and Thursday(8am-11:15am) Lecturer or Tutor
ASSIGNMENT DETAILS
Title: The influence of AI on e-commerce
Length
Due
Date submitted: 11/4/2022 Home campus (where you are
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Trang 2ARO 00380 08/15
INDIVIDUAL ESSAY
E-COMMERCE
Nguyễn Minh Trí Student ID: WSU21000292
Class: AEN-T122WSB-6 Professor: Gabriel Ryan Western Sydney University Vietnam, April 2022
Trang 3The influence of AI on e-commerce
Artificial intelligence, known as AI, is a branch of computer science that emulates human intelligence into machines The continuous development of science and technology leads to the advancement of AI Humans have created AI and robots to serve human needs from basic tasks to complex tasks in the past few decades
AI is one of the fastest-growing fields, attracting a lot of attention from investors around the world It can
be said that AI is all around us from shopping malls having automatic cash registers to airports with
advanced security equipment Developing in tandem with AI, electronic commerce (e-commerce) emerged
to allow users to buy and sell products online E-commerce seems to be one of the successful industries in applying AI to the working process to benefit businesses and provide the best experience for consumers The fact that, however, AI is gradually replacing human work results in an increase in unemployment rates Therefore, AI is both beneficial and harmful to people, especially businesses Furthermore, the benefits may outweigh the drawbacks, as this essay will show the impact of AI on e-commerce through the convenience
of AI and the cost that firms can reduce at the lowest possible rate when using AI
To begin with, thanks to the fourth industrial revolution, people focus on digital technology combined with the internet, commerce develops rapidly, which makes it easier for people to buy and sell Referring to e-commerce, it is impossible to ignore the fact that businesses use AI in their operations, which brings
convenience to both enterprises and consumers According to NewVantage in 2022, 91% of top businesses invested in AI Data is so numerous and overwhelming today that analyzing it can take many days AI assists organizations in collecting massive volumes of data in real-time and providing precise analysis and predictions For example, analyzing the needs of the majority of customers and forecasting the number of goods that can be sold to avoid inventory Making appropriate decisions based on accurate analysis may give a competitive edge Moreover, AI facilitates business process automation, which transfers to the machines simple and manual duties Employees have more time to concentrate on specialized work rather than wasting time on trivial matters Chatbots are a particular example of this aspect Soni (2020) stated that
Trang 4the system automatically asks questions and based on the answers of buyers, gives the best advice which is suitable to their wishes The customer's shopping experience is enhanced because they can be supported by chatbots 24/7, which makes the company sell more products and increases revenue
Nonetheless, it is undeniable that small businesses struggle to raise the necessary capital to put AI to work Moreover, AI is devoid of imagination It just has its creator's thinking, and AI only does what humans have taught it to do, so it is difficult to give AI complicated jobs (MacAraig, 2019) Besides, workers are
concerned that technology will increasingly replace humans, increasing unemployment rates McKinsey (as cited in Duggal, 2022) stated that roughly 30% of people will lose their jobs in 2030 due to technology Another disadvantage of AI is that workers depend on the results of machines, and programs, like humans, can make mistakes, how they are built may have a big impact on this Programs may contain loopholes that impact the data produced by AI Other competitors take advantage of loopholes to get access to your
company's data, putting you at a competitive disadvantage However, the use of advanced technologies in jobs that require highly qualified employees, thereby driving people to upskill to construct and control more modern machinery In addition, staff must double-check the results of the technology's work to ensure that there are no errors and they should pay particular attention to the security of the programs Thus, there are still limitations, AI has great promise as a tool for motivating efforts that enable companies to be highly profitable, providing convenience for employees and a good shopping experience for customers
Moving on to the next aspect, applying AI to online shopping will significantly lower operating expenses According to Kenton (2021), “operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.” For most companies, Operating costs are both necessary and unavoidable Reduced operating costs provide an advantage in a competitive market and boost employee earnings People today have more and more chances to access social networks as technology advances, making it easier for businesses to market products through their websites Companies do not have to pay the cost of renting space, hiring employees to work directly at the manufacturers It is clear that the application of AI will greatly reduce the number of employees doing repetitive tasks or tasks that can be done 24/7 such as chatbots answering customers' questions
Furthermore, firms do not have to pay for printing advertising paper and hiring people to paste it Today, AI
Trang 5analyzes the search needs of consumers, as a result, automatically promoting the company on social
networking sites such as Facebook, and Instagram According to Amos (2021), using AI to automate email marketing saves money In detail, email marketing simplifies a company's marketing strategy, allowing it to get closer to clients and build stronger relationships Hence, the company's incomes increase because it is simple for buyers to find things online On the other hand, people are interested in talking to the staff through customer service when they have questions about the specifics of the product because AI only handles simple questions Those who are not tech-savvy will have a difficult time purchasing using AI when doing it online Moreover, investing in AI is a two-sided challenge because the enterprises spend a lot of money to own AI, so the company must calculate carefully to minimize revenue loss As mentioned, AI occasionally breaks or malfunctions and requires a warranty; corporations must spend money to repair them Besides, as mentioned, AI occasionally breaks or malfunctions and requires a warranty; corporations must spend money to repair them However, programming and data errors are infrequent, and the
advancement in technology makes it easier to repair machines In short, although there are many challenges when investing in AI, lower operational costs due to AI application will provide numerous advantages and benefits to businesses
In conclusion, AI is an essential component of human life AI is useful in a variety of ways, ranging from minor details to the replacement of factory workers The use of AI in e-commerce helps consumers have the best shopping experience as well as encourages employees to strive to improve their capabilities to work with AI AI and e-commerce, however, are obstacles for some people who are not used to technology The flaws and errors of AI and robots need to be thoroughly examined before businesses make decisions based
on AI analysis Finally, if companies have highly qualified employees who know how to take advantage of
AI benefits, the development of AI and e-commerce is extraordinary for mankind
Trang 6Reference lists
Amos, Z (2021, September 13) 6 Ways Artificial Intelligence Can Cut Business Costs Techvera
https://techvera.com/6-ways-artificial-intelligence-can-cut-business-costs/
Duggal, N (2022, March 3) Advantages and Disadvantages of Artificial Intelligence Simplilearn.Com.
https://www.simplilearn.com/advantages-and-disadvantages-of-artificial-intelligence-article
Kenton, W (2021, September 2) What Is an Operating Expense? Investopedia Retrieved March 11, 2022,
https://www.investopedia.com/terms/o/operating_expense.asp
Lin, Y (2022, March 14) 10 Artificial Intelligence Statistics You Need to Know in 2022 [Infographic]
Oberlo https://www.oberlo.com/blog/artificial-intelligence-statistics
MacAraig, M (2019, October 18) 11 Pros and Cons of AI for Businesses
https://www.insightsforprofessionals.com/it/software/11-pros-and-cons-of-ai-for-businesses
Soni, V D (2020, July 11) Emerging Roles of Artificial Intelligence in Ecommerce SSRN https://papers-ssrn-com.translate.goog/sol3/papers.cfm?
abstract_id=3648698&_x_tr_sl=en&_x_tr_tl=vi&_x_tr_hl=vi&_x_tr_pto=op,wapp