Creating complexity matrix for classifying artificial intelligence applications in e-commerce: New perspectives on value creation

Abstract

This research paper provides a comprehensive exploration of the role of Artificial Intelligence (AI) in value creation within the e-commerce sector, focusing on how task and information complexity affect AI deployment. It first outlines the historical development of value theory and value creation, highlighting the shift from traditional modes to modern interactive and co-creation models. Following this, the paper delves into AI’s potential in various e-commerce dimensions including personalization, product recommendation, supply chain efficiency, and more. The centrepiece of the study is a detailed matrix classifying AI into Automated Intelligence, Assisted Intelligence, and Augmented Intelligence, based on the complexity of tasks they execute and the information they analyse. This research study engaged a panel of fifteen industry and academic experts to critically examine and assign complexity scores to various Artificial Intelligence applications within the e-commerce and similar sectors. The experts evaluated task and information complexity, thereby enabling a classification of the applications into a comprehensible matrix. This classification not only provides a guide for AI system design and evaluation but also enhances understanding of their functional dynamics. The paper contributes theoretically by advancing our understanding of AI as a value creator in e-commerce and practically by offering a roadmap for businesses to adopt and leverage AI technologies. As AI continues to revolutionize the e-commerce sector, the findings of this study provide invaluable insights for businesses seeking to gain a competitive advantage in the digital marketplace.

Beyond interaction: Generative AI in conversational marketing - foundations, developments, and future directions

“…However, the dawn of the digital age and the explosion of social media platforms heralded a significant transformation in marketing strategies, transitioning into what is now often termed Digital Marketing. Today's customers, more informed than ever before (Einhorn & Löffler, 2021;Pilelienė, Alsharif & Alharbi, 2022), demand experiences that are not only personalized but also interactive (Babayev & Israfilzade, 2023), seeking two-way interactions where their inquiries and feedback are promptly addressed and valued.…”

“…In the past 50 years, individuals have been using machines to communicate on their own terms, pointing, dragging, swapping, and tapping (Babayev & Israfilzade, 2023). By learning our language, computers can adapt and respond to messages (Cancel, Gerhardt & Devaney, 2019;Cheng & Jiang, 2021;Jamil & Shahzadi, 2023).…”

“…Differentiating from conventional, one-directional marketing communications, the objective is to engage with customers by utilising the influence of dialogue to convey information, address inquiries, and gather feedback, thereby establishing more profound, individualised relationships with customers. Given the widespread usage of the digital era (Babayev & Israfilzade, 2023), it is unsurprising that most of these interactions occur on instant messaging platforms. These platforms serve as the contemporary benchmarks of online communication.…”

“…Furthermore, conversational marketing thrives on its omnichannel presence, ensuring a seamless experience across various platforms, from social media to email, aligning with customers' preferred modes of interaction. This strategy is complemented by the continual adaptation of marketing tactics based on customer feedback, creating an iterative process that keeps businesses attuned to evolving customer needs and market trends (Babayev & Israfilzade, 2023). The integration of scalability and automation, alongside a deep contextual understanding of each interaction, further enhances the effectiveness of conversational marketing, making it a robust, responsive, and customercentric approach.…”

“…Although effective in reaching large audiences, this approach lacked personalisation and interactive engagement. The rise of digital marketing, fuelled by the increasing number of social media platforms, has resulted in a major change, demanding a deeper strategy that appeals to the informed and interactive modern customer (Einhorn & Löffler, 2021;Pilelienė, Alsharif, & Alharbi, 2022;Babayev & Israfilzade, 2023).…”