Analyzing the Relationship Between Artificial Intelligence and Customer Experience Improvement in the Online Retail Industry

Authors

    Ali Ebrahimi MA Student, Department of Business Administration, Marketing Major, Shams Institute of Higher Education, Gonbad Kavoos, Iran
    Mahmoud Ebrahimi * PhD in Business Management, Department of Management, Islamic Azad University, Aliabad Katool, Iran Mahmood_ebrahimi2@yahoo.com
    Narjes Ebrahimi PhD in Entrepreneurship, Department of Entrepreneurship, Aliabad Katool Branch, Islamic Azad University, Aliabad Katool, Iran

Keywords:

Artificial intelligence, customer experience, online retail, personalization, chatbot, qualitative research, e-commerce, user satisfaction

Abstract

This study aims to explore the relationship between artificial intelligence and customer experience enhancement in the online retail industry from the perspective of industry professionals. A qualitative research design was employed, utilizing semi-structured interviews with 27 participants working in AI, e-commerce strategy, and customer service roles in Tehran-based online retail businesses. Data collection continued until theoretical saturation was reached. The interviews were analyzed using NVivo software through a three-stage coding process: open coding, axial coding, and selective coding. This approach enabled the identification of key categories and themes that reflect the role of AI in shaping online customer experiences. The analysis revealed six main thematic categories: AI-enabled personalization, service efficiency and responsiveness, human-AI interaction challenges, trust and ethical concerns, technical capabilities and limitations, and customer engagement. Participants emphasized the benefits of personalization and automation, but also highlighted challenges including emotional disconnect, data privacy concerns, and inconsistent AI performance. The study found that while AI improves efficiency and customer satisfaction, its effectiveness is contingent upon ethical design, cultural adaptation, and hybrid human-AI collaboration. AI plays a critical role in enhancing customer experience in online retail, but its full potential can only be realized when technical sophistication is balanced with ethical transparency, emotional intelligence, and user-centered design.

Downloads

Download data is not yet available.

References

Aggarwal, D., Sharma, D., & Saxena, A. B. (2024). Enhancing the Online Shopping Experience of Consumers Through Artificial Intelligence. International Journal of Information Technology and Computer Engineering(42), 1-5. https://doi.org/10.55529/ijitc.42.1.5

Akdemir, D. M., & Bulut, Z. A. (2024). Business and Customer-Based Chatbot Activities: The Role of Customer Satisfaction in Online Purchase Intention and Intention to Reuse Chatbots. Journal of Theoretical and Applied Electronic Commerce Research, 19(4), 2961-2979. https://doi.org/10.3390/jtaer19040142

Arora, R. (2024). Bridging the Gap Between Offline and Online Presence in E-Commerce: The Role of Artificial Intelligence. Interantional Journal of Scientific Research in Engineering and Management, 08(12), 1-6. https://doi.org/10.55041/ijsrem33002

Coelho, M., & Imamović, I. (2024). AI-Driven Personalization in Beauty Retail. 131-162. https://doi.org/10.4018/979-8-3693-5340-0.ch005

Durukal, E. (2022). Customer Online Shopping Experience. 60-77. https://doi.org/10.4018/978-1-6684-4380-4.ch004

Ekawati, N. W., Giantari, I. G. A. K., Wandhini, N. M. S., Manganti, S., Ni Made May Artistya Dewi, S., & Ekazandra, P. L. (2024). Peran Kepercayaan Dan Kepuasan Pengguna Sebagai Pemediasi Pengalaman Belanja Online Terhadap Niat Beli Ulang (Studi Pada Pengguna Aplikasi TikTok Shop). Prosiding Seminar & Conference FMI, 2, 507-519. https://doi.org/10.47747/snfmi.v2i1.2333

Ersoy, A. B. (2024). Artificial Intelligence Applications Used in on-Line Retail in China and Their Relationship to Customer Satisfaction and Loyalty. International Journal of Business and Applied Social Science, 8-17. https://doi.org/10.33642/ijbass.v10n3p2

Giang, N. T. P., Hung, D. M., Huong, T. T., Quyên, H. T. T., Thơm, N. T., Tran, T. B., & Dong, T. T. (2025). Researching User Experience With Artificial Intelligence Application for Customer Care Services on E-Commerce Platform. Jurnal Ekonomi Perusahaan, 31(2), 149-174. https://doi.org/10.46806/jep.v31i2.1319

Horváth, J., Fedorko, R., Bačík, R., & Rigelský, M. (2023). Identification of Noteworthy Digital Marketing-Related Elements in the Significance of Online Shopping and AI. 153-159. https://doi.org/10.34135/mmidentity-2023-15

Jain, R. K. (2024). Customer Satisfaction Towards Online Shopping With Reference to Ujjain City. Interantional Journal of Scientific Research in Engineering and Management, 08(05), 1-5. https://doi.org/10.55041/ijsrem33294

Kráľ, Š., Fedorko, R., & Štofejová, L. (2024). The Importance of Artificial Intelligence in the E-Commerce Process. 349-359. https://doi.org/10.34135/mmidentity-2024-36

Logesh, M. S., & Raja, S. C. (2024). A Study on the Impact of Artificial Intelligence on Online Customer Satisfaction. Ejf, 03(05), 133-144. https://doi.org/10.58394/ejf.2024.3514

Manikandan, G., & Bhuvaneswari, G. (2024). Measuring the Influence of Artificial Intelligence (AI) on Online Purchase Decisions-in Case of Indian Consumers. International Journal of Scientific Research in Science Engineering and Technology, 250-259. https://doi.org/10.32628/ijsrset2411122

Meng, X., & Beninsig, M. A. (2024). Intelligent Application Utilizing Facial Recognition to Determine Marketing Strategies for Shopping Mall Customers. 118. https://doi.org/10.1117/12.3035267

Othman, M. Z., Ismail, I., Hasan, H. F. A., & Razali, F. (2022). The Role of the Product Quality and Price in Achieving Customer Satisfaction in Online Shopping. International Journal of Academic Research in Business and Social Sciences, 12(10). https://doi.org/10.6007/ijarbss/v12-i10/15123

Parsakia, K., & Jafari, M. (2023). Strategies for Enhancing Customer Engagement Using Artificial Intelligence Technologies in Online Markets. Journal of Technology in Entrepreneurship and Strategic Management (JTESM), 2(1), 49-69. https://doi.org/10.61838/kman.jtesm.2.1.6

Pillarisetty, R., & Mishra, P. (2022). A Review of AI (Artificial Intelligence) Tools and Customer Experience in Online Fashion Retail. International Journal of E-Business Research, 18(2), 1-12. https://doi.org/10.4018/ijebr.294111

Radha, D. S. (2025). Role of Artificial Intelligence in Shaping Consumer Experience and Loyalty in Fashion E-Commerce. Interantional Journal of Scientific Research in Engineering and Management, 09(04), 1-9. https://doi.org/10.55041/ijsrem44114

Sharma, A. (2023). Analyzing the Role of Artificial Intelligence in Predicting Customer Behavior and Personalizing the Shopping Experience in Ecommerce. Interantional Journal of Scientific Research in Engineering and Management, 07(02). https://doi.org/10.55041/ijsrem17839

Singhal, P. (2024). Understanding the Usability and Response Quality of Artificial Intelligence Chatbots on Customer Engagement in Branded Apparel E-Retailing. 403-420. https://doi.org/10.4018/979-8-3693-7620-1.ch020

Siow, J. S., Teoh, B. A., Ong, C. Z., & Chee, K. X. (2025). The Impact of AI Chatbot Adoption on Customer Experience in E-Retailing. Issues and Perspectives in Business and Social Sciences, 5(1), 27-36. https://doi.org/10.33093/ipbss.2025.5.1.3

Sugiardi, S., Apriyanto, A., & Tupamahu, K. H. (2025). E-Commerce and Changes in Consumer Behaviour in the Economy 5.0 Era. Morfai Journal, 5(2), 587-591. https://doi.org/10.54443/morfai.v5i2.2699

Sunny, D. (2024). Enhancing Virtual Try-Ons With Stable Diffusion: A Review. Interantional Journal of Scientific Research in Engineering and Management, 08(04), 1-5. https://doi.org/10.55041/ijsrem29910

Suruthika, M., & Chitra, R. (2025). A Study on AI-Powdered Virtual Shopping Assistants and Consumer Engagement: A Special Reference to Myntra App. 101-108. https://doi.org/10.34293/icaicm-25.ch014

Widjaja, W., & Rustam, Y. W. A. (2024). E-Retailing Study: A Bibliometric Analysis and Systematic Literature Review. Teknosains Jurnal Sains Teknologi Dan Informatika, 11(1), 112-119. https://doi.org/10.37373/tekno.v11i1.783

Xue, M. (2023). Consumer Behavior With Artificial Intelligence Products. Ijgem, 1(1), 29-34. https://doi.org/10.62051/ijgem.v1n1.05

Downloads

Published

2024-12-30

Submitted

2024-10-09

Revised

2024-12-03

Accepted

2024-12-10

How to Cite

Ebrahimi , A., Ebrahimi, M., & Ebrahimi , N. (2024). Analyzing the Relationship Between Artificial Intelligence and Customer Experience Improvement in the Online Retail Industry. Digital Transformation and Administration Innovation, 2(4), 73-81. https://journaldtai.com/index.php/jdtai/article/view/110

Similar Articles

1-10 of 57

You may also start an advanced similarity search for this article.