Role of Artificial Intelligence in Online Shopping and its Impact on Consumer purchasing behaviour and Decision

The E-Commerce Industry has experienced rapid growth over the last decade. Due to the rapid growth of online customers, it is critical to understand their needs and behaviours. Thus, E-Commerce businesses integrated AI (Artificial Intelligence) enabled technology to ascertain customer needs and preferences regarding online products and services. The artificial intelligence monitors the customer’s choice, preferences, taste, and purchasing pattern, the frequency of purchases and the average amount spent over a specified period. It provides detailed customer information to ECommerce Companies. Thus, this information enables businesses to tailor their products and services to their customers’ specific needs and preferences. By providing various strategies for product recommendations, discounts, and multiple offers, the AI assists the customer in selecting and purchasing the best suggested/recommended products and services. The current study collected data from 200 respondents from various socio-economic backgrounds in Haryana. The findings represent the significant association between Artificial Intelligence (Voice and Visual Search, Assortment Intelligence Tools, personal touch with chatbots, Virtual Personal Shoppers, Fake Review Detection, AI-based sales process, localise the customer experience) and Consumer buying behaviour (Trust, Attitude and Perceived Risk) for online shopping. AI has a significant impact on customer purchasing decisions with a positive correlation. The purchasing pattern is measured with the variables: preferred Payment Method, the value of money spent on online shopping, frequency of online shopping and electronic Gadgets used in online shopping.