The Effect of Artificial Intelligence on Customer Journey in Online Retailing

Abstract

Artificial Intelligence (AI) is transforming and shaping the customer journey in online retail platforms by influencing how customers interact with the retailers and how effectively brands can fulfill customer’s needs. As AI tools are integrated into online retail platforms to influence customers experiences, understanding their impact on consumers behaviour and building a long-term customer relationship is necessary. This research explored the effect of AI tools, especially recommendation engines and chatbots across online customer journey: pre-purchase, purchase, and post-purchase stage. The main motivation of this study was to figure out how technological advancement can align and shape an ethical, transparent, and user-centric shopping environment. By using a qualitative research design combining an online survey and focus group discussion, this study explored customers’ perceptions on AI-driven features like personalization, interaction, trust, and ethical concern. The findings of this study revealed that AI streamline customer experience and satisfaction positively, but customers have concern about transparency, data privacy, and emotional engagement. This study offered theoretical insights into the AI’s role in shaping digital customer journey. It also offered practical insights for online retailers who want to integrate AI tools in their platform ethically and effectively.