Paper Title
AI-Driven Business Intelligence in Retail: Transforming Customer Data into Strategic Decision-Making Tools
Abstract
The use of Artificial Intelligence (AI) in combination with Business Intelligence (BI) has greatly improved the retail industry since it helps companies understand and capitalize on the large amounts of data collected on customers. The purpose of this research is to examine the concept of AI in the business intelligence tools in the retail industry to convert customer data into valuable business information. The study utilizes empirical approach in its analysis and applies the current state of machine learning algorithms, predictive analysis and real-time data processing to determine the effect on operational efficiency, customer satisfaction and sales. To support this, a quantitative analysis of global retail industry cases in which AI-enforced BI systems have produced tangible results, including a 20-30% enhancement in inventory management and a 15-25% boost in customer loyalty, is presented. The subsequent analysis also unveils the new areas for AI implementation in customer segmentation, individual marketing, and demand prediction. The paper also fills the gaps in the existing literature by demonstrating that AI-driven BI tools are faster, more accurate, and scalable than traditional decision-making tools. The real-life examples presented in the study can help retailers to improve their business performance, increase revenue, and improve customer interactions. The paper concludes with a call to action to embed AI into BI systems to support future-proofing of retail strategies; although recognising the barriers to doing so such as data privacy, ethical issues, and limited resources. This study has implications for retailers, policy makers, and scholars as it provides a much-needed link between technology development and retail strategy.
Keywords - AI-Driven Business Intelligence, Retail Analytics, Customer Data, Strategic Decision-Making, Machine Learning