In the light of the vision and guidance of Prof. Dr. Al Tahar Hemaya, the Dean of the Faculty of Management Professional Technology and Computers, Egyptian Russian University. Dr. Mona H. Mussa, the Lecturer of Business Administration at the Faculty of Management, conducted a study titled “The Impact of Artificial Intelligence on Consumer Behavior – An Applied Study on the Online Retailing Sector in Egypt”

Dr. Mona Mussa has revealed that the Artificial Intelligence “AI” becomes an emerging trend in many different fields; marketing is one of these fields. The impact of AI appears clearly in the retailing sector, which is characterized by frequent contact with customers, which produces a large amount of data about customers’ attributes and transactions. In the digital platform, consumers show their needs, wants, and attitudes in different forms like search, comments, blogs, tweets, likes, videos, and conversations, through several channels like web, and mobile.

AI can play a role in turning such a flow of data into meaningful insights on consumer purchase behavior, such insights are the base that marketers depend on, to decide on marketing tactics, and predict sales. In addition, AI depends on such insights to provide a whole spectrum of advantages to consumers, such as shorter and convenient shopping time. Also, AI provides the consumer with a new experience, through automatic recommendations and pertinent product suggestions. AI presents advantages to consumers, marketers, and society as a whole through improving the creation, optimization, and distribution of value.

AI can help marketers to predict and change consumer behavior during the consumer journey. In the need recognition stage, AI can help marketers to build faster, accurate, and updated profiles of customers. Then, in the information search stage, AI can help marketers to determine the best leads for better targeting, provide the ideal suggestions for the customers, and determine the ideal style of content that suits customers’ preferences. While in the evaluation stage, AI can target the customers with high purchase intentions, then sending them the persuasive content. In the purchase stage, AI can provide customers with intelligent purchasing systems that can make the purchase process easier than before. Finally, in the stage of post-purchase behavior, AI can delight consumers and determine their value.

The conducted research aims to clarify the impact of Artificial Intelligence on customers’ purchase behavior in the online retailing sector, which helps online retailers to measure the extent to which customers follow recommendations from AI systems implemented in their retailers while purchasing, with a special focus on each stage of the consumer journey from need recognition, information search, evaluation, and purchase decision making to post-purchase behavior. In the research model, 2 constructs are focused on “Artificial Intelligence and Consumer behavior”, as well as demographics. The research has employed the quantitative research method. The primary data was collected through the online questionnaire. Convenience sampling was used. The sample size was 400. The analyzed data has shown that there is a significant relationship between Artificial Intelligence and consumer behavior. Moreover, the model has a high ability to predict and explain the consumer purchase behavior through Artificial Intelligence.

It appears that AI will lead to another industrial revolution, and the winners will be those who adapted earlier to AI. Therefore, marketers need to prepare themselves for the changes that come in the era of Artificial Intelligence; Learning about the effect of AI on marketing becomes crucial. Marketers need to understand how they can use AI in their marketing activities and functions to predict and change consumer behavior. In addition, the study recommends online retailers to employ Artificial Intelligence in each step in the consumer journey to predict consumer’s purchase behavior in the online platform.