The Impact of AI Tools on Last-Mile Delivery in the E-Commerce Sector in Saudi Arabia

In Saudi Arabia, the e-commerce sector has witnessed an impressive growth spurt as a result of advancements in technology and changes in consumer behavior. Last-mile delivery, the last step in the delivery process is a key yet most difficult aspect as it contributes to higher share out of total transport cost and critical function for customer satisfaction. This study explores the influence of Artificial Intelligence (AI) tools within KSA's e-commerce last-mile delivery ecosystem, particularly examining how technologies like route optimization, demand forecasting and even autonomous vehicles are changing logistics. Bearing this in mind, a third approach was adopted comprised of performing research to conduct an exploratory study based on mixed-methods: literature review; interviews with professionals from the branch and quantitative data analysis about whether AI tools significantly help improve efficiency for making deliveries as well satisfaction delivered to customers. Conclusions: The results reflect the significant competitive edge that e-commerce businesses in Saudi Arabia can harness by embracing AI strategically.