THE ROLE OF ARTIFICIAL INTELLIGENCE IN E-COMMERCE BUSINESS

1.1 Introduction

An Artificial Intelligence (AI) program is called Intelligent Agent. Intelligent agent gets to interact with the environment. The agent can identify the state of an environment through its sensors and then it can affect the state through its actuators. The important aspect of AI is the control policy of the agent which implies how the inputs obtained from the sensors are translated to the actuators, in other words how the sensors are mapped to the actuators, this is made possible by a function within the agent. The ultimate goal of AI is to develop human like intelligence in machines. However such a dream can be accomplished through learning algorithms which try to mimic how the human brain learns. Machine learning (ML) is the study of computer algorithms that can improve automatically through experience and by the use of data.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.

1.2 Background of Study

The initiative for developing Artificial Intelligence (AI) system starts in the 1950 year. With the appearance of the initiative there is also the appearance of several doubts about its application and its usage. So, scepticism as the result have so-called AI winter which in a significant way decrease the speed of the developing AI. At the beginning of the development of AI, there is a challenge related to the lack of computer systems as well as computer technologies. Furthermore, there is also a challenge related to the speed of such systems that are not good enough. With the development of computer science and computers as a whole, the development of AI is increasing. The first usage of AI was in the United States Department of defense in which the main usage of the AI system was collecting and analyzing large amounts of data. in the 1990 year, AI was used in the game industry. This year is also a pivotal year for AI and its popularity because AI chess software showed that it can win against humans in the chess game.

The Modern business is characterized by frequent changes; the changes are rapid and often unpredictable. The development of technology, digitization, the advent of Internet, the market is becoming more and more digital. At this moment in time a variety of highly diverse and sophisticated technologies, of almost unbelievable importance to humanity and of stratified conceptual power are been developed. This shift has been empowered by advancements in innovation, digital marketing and soon artificial intelligence.

The growth of national companies contributes to the development of both the economy and the society. Organizations generally intend to fill as far as market size and resources. To ultimately ensure sales growth; companies must ensure the attraction and retention of potential customers in order to remain profitable. Hence, this can only be attained through the use of the new technologies such as: Digital marketing and artificial intelligence solutions. For this matter, this study reveals the influence of sales digitalization technologies, which include digital marketing and artificial intelligence on the sales growth of E-commerce Business. The topic is positioned as a timely addition to the literature as business intelligence technologies develops and accepts it's anything but an indispensable and basic part of an association by and large methodology.

Accordingly, digital marketing addresses a science that could give new ways and capacities to different undertakings for the establishment of a modified customer relationship and customer experience (Girchenko, 2016). The fundamental rationale of advertising has moved from trade of products toward administration arrangement, intuitiveness, availability and customer connections (Vargo, 2004). According to Sivarajah (2009) digital Marketing will be a new search and break-in period. In each part of our day by day lives, from the manner in which we work, shop, convey, or mingle; we are both burning-through and making immense measures of data. Regularly, these day by day exercises make a path of digitized information that is being put away, mined, and dissected by substances in the private just as people in general and non-benefit areas. The overall objectives of these information driven drives is the expectation of producing significant knowledge that is relevant to business choices. Client exchange information bases give huge measures of great information that can permit firms to comprehend client conduct and tweak business strategies to progressively fine segments or even segments of one (Singh, 2019).

Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Role of Artificial Intelligence in E-commerce Business.

1.3 Statement of Problems

Investigation reveals that the modern economies are heavily dependent on the corporate form of doing business in both developed and developing countries. Consequently, strong and competitive businesses with international potential are vital. The sustainability of national organizations can only be accomplished when they make deals and become productive. Making consumers aware of their products and services requires the use of the new forms of technologies in order to survive and be competitive, whether in the national or international context.

Digital marketing and artificial intelligence solutions seem the only way to reach potential customers for a company, to make profit and ultimately contribute to the national development of the society. The problem facing Machine Learning is the lack of good data. While enhancing algorithms often consumes most of the time of developers in AI, data quality is essential for the algorithms to function as intended. Noisy data, dirty data, and incomplete data are the quintessential enemies of ideal Machine Learning. It's becoming increasingly difficult to separate fact from fiction in terms of Machine Learning today (Provintl, 2021).

1.4 Aim and Objectives of Study

The aim of the study is to examine the Role of Artificial Intelligence in E-commerce Business. In achieving this aim, the following specific objectives were laid out as follows:

1. To evaluate the level of utilization of digital marketing and artificial intelligence solutions by E-commerce Business.
2. To assess the impact of digital marketing and artificial intelligence practices on the sales growth of E-commerce Business; and
3. To identify the challenges of adoption of digital marketing and artificial intelligence solutions tools experienced by E-commerce Business.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• What is the level of utilization of digital marketing and artificial intelligence solutions by E-commerce Business?
• What is the impact of digital marketing and artificial intelligence practices on the sales growth of E-commerce Business?
• What are the challenges of adoption of digital marketing and artificial intelligence solutions tools experienced by E-commerce Business?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There are no significant challenges of adoption of digital marketing and artificial intelligence solutions tools experienced by E-commerce Business
• H1: There are significant challenges of adoption of digital marketing and artificial intelligence solutions tools experienced by E-commerce Business

1.7 Significance of Study

The study is valuable to marketers to keep an update about the changes and new trends in the digital marketing era. It is also significant to decision makers in the government and other organizations who would want to know how to improve the business opportunities for the companies operating in the national context. The government can provide an enabling environment with regards to information technology infrastructure, regulations and laws guiding digital marketing and artificial intelligence practices.

The importance of this study is to use object oriented development processes and techniques in the E-commerce Management System. The major quest is to ease the problem and stress encountered in customers’ grocery shopping experience and keeping records of stock list, customer lists, sales volume, and summary report.

This study will be of immense benefit to software engineers and other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

1.8 Scope of Study

The scope of the research is focused on the Role of Artificial Intelligence in E-commerce Business.

1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint:The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Research material: availability of research material is a major setback to the scope of the study.
3. Frequent power failure:This made the researcher append more money on fuel to ensure sustainable power.
4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection.

1.10 Definition of Terms

E-commerce: It can be described as the using of electronic networks, such as Internet, as a distribution channel. The involved parties can be either individuals or organizations and a common sectioning to do is to differ between business-to-consumer and business-to-business (Khosrow-Pour, M. 2006).

Application Service Provider (ASP): Is defined as an enterprise that delivers application functionality and associated services across a network to multiple customers using a rental or usage-based transaction-pricing model.

Electronic Data Interchange (EDI): Electronic data interchange (EDI) is an electronic communication method that provides standards for exchanging data via any electronic means.

Merchant: A person or company involved in wholesale trade, especially one dealing with foreign countries or supplying goods to a particular trade.

Expert System: This is a computer system that emulates the decision-making ability of a human expert.