CHAPTERII THEORETICALFOUNDATIONS 2.1.ArtificialIntelligence ArtificialIntelligenceisarelativelynewtechnologywithawiderangeofapplications.Itsgoalisto mimicorsurpasshumanintelligence.AIisatechnicalphrasethatdescribeshowhumans'regular mentalprocessesareevaluatedandrealizedthroughintellectualdevelopmentandstimulation.The foundationofAItechnologyismadeupofalgorithmsthatmimicthefunctionsofthehumanmind. Ithasintimatetiestolanguage,biology,medicine,andotherfields.ArtificialIntelligence(AI) integratessocialscienceandengineeringthroughawiderangeofapplicationsthatimprovesociety. Itiscapableofidentifyinghumancommandsandapplyingitsalgorithmstointerpretdataina similarwaytohowhumanmindsoperate.Advancesincomputertechnologyandartificial intelligencearecloselylinkedtoadvancementsintheeconomyandsociety(Ahmadetal,2022). AImostlyusesmachinelearningandinteractivelearningtechnologies.Itincludesdatamining, statistics,probabilitytheory,patternrecognition,andotherfields.TheeconomicapplicationsofAI arebecomingmorewidespreadandhaveanimpactonourwayoflifeandworkasaresultofthe advancementsincurrentscienceandtechnology.Itoffersseveralbenefitsandisbecomingamajor forcebehinde-commerceinparticularwitheverydaythatgoesby.Theadvancementofartificial intelligence(AI)technologyisdrawingnumerousresearchersfromacademiaandindustryto expanditsusefulnessinvariousdomains.Itisnowassistingpeoplewithavarietyofchores,etc (Ran,2021). Artificialintelligence(AI)technologyisincreasinglybeingappliedinvarioussectors,with machinesadoptingseveralelementsofhumanintelligence(HI)toenhancecreativityand 18 1. innovation.Forexample,robotsdesignedforresidentialandmedicalfacilitieshaveautomated manyaspectsofhumandailylife.Assuch,customerserviceisnowtransformingintoself-service thankstotheseadvances(Huang&Rust,2018).AlthoughAIsystemslackemotionalintelligence andtheiremotionsareartificiallyprogrammed,theimportanceofhumantouchinthefuturemay becomemoreprominent,evenbecomingamajordifferentiatorinsomeareas.Althoughrobotsmay requireinteractionbetweenindividuals,humaninteractionmuststillbemaintainedbecausethe socialaspectisveryimportant(Keatingetal.,2018). Figure2.1FourAICategories (Huang&Karat,2018) Huang&Rust(2018)classifiesintelligenceintofourcategories:(1)Mechanical:involvesthe abilityofmachinestocompleterepetitivetasksautomaticallywithlimitedlearningandminimal conditionsforconsistentperformance,(2)Analytics:servestoanalyzeandstudydatatosolve problems,utilizingalgorithmstogainvaluableinsights,(3)Intuitive:includestheabilitytothink creativelyandadapteffectivelytonewconditions,involvingintuitionandexperiential problem-solving,and(4)Empathy:reflectstheabilitytoidentify,understand,andrespondtothe emotionsofothersandinfluencetheiremotions,includinginterpersonalandsocialskills.Imaginary andempathicintelligenceisprovingtobemorechallengingforAItoimitate.Thestudywill exploretheroleofAIinchangingthewayconsumersinteractwithfashionproducts. 19 AIinthefashionindustrycanplayaroleinthreecategories.Basedontheexplanationabove, AnalyticalandintuitiveisthefirstthingthatAIcanhelpcustomerstointeractwithfashion products.Intheworldoffashion,AIcanbecategorizedasatechnologythatcombinesanalytical& intuitiveabilitiesaswellasempathy.Intheanalytical&intuitivecategory,AIcanprovideaccurate recommendationstocustomersbasedonanalysisofpreviouspurchaseactivity.Forexample,by usingtechnologylike3DLOOK,AIcanrecognizeconsumerbuyingpatterns,understandtheir preferences,andofferpersonalizedproductrecommendations(3DLOOK,2021).Withthis approach,AIhelpsretailersoptimizetheirmarketingstrategiesthroughadeepunderstandingof consumerbehavior.Meanwhile,intheempathycategory,AIwasintroducedthroughtheuseof chatbotsthatareabletoprovidemorehumanandresponsiveinteractions.AIchatbotsarenotonly abletoquicklyanswercustomerquestionsbutcanalsoexpressempathythroughresponsestailored tocustomers'emotionalneeds,thuscreatingamorepersonalizedandenjoyableshopping experience(Zheng,2023). ArtificialIntelligence(AI)toolsareincreasinglytransformingconsumershoppingbehaviorby providingmorepersonalizedandefficientexperiences.Technologiessuchasrecommendersystems, chatbots,andvirtualtry-on(VTO)playakeyroleinthis.AI-poweredrecommendersystems analyzeconsumerdatatoprovideproductsuggestionstailoredtoindividualpreferences,whichcan increasethelikelihoodofpurchaseconversion(daCostaetal.,2022).Additionally,AI-integrated chatbotsprovideinstantcustomersupport,increasingsatisfactionbyprovidinganswersand assistancearoundtheclock(Khan,2022).Virtualtry-onallowsconsumerstovirtually‘try’ productsbeforemakingapurchase,reducinguncertaintyandincreasingsatisfactionwiththeir purchase(daCostaetal.,2022). TheimpactofimplementingAItoolsonconsumershoppingbehaviorissignificant,changingthe wayconsumersinteractwithonlineretailplatforms.Thesetechnologiesincreasecustomer 20 1. engagementandsatisfactionbymakingtheshoppingexperiencemoreintuitiveandpersonalized. AIrecommendersystemsincreasetherelevanceofproductsuggestions,leadingtohigher conversionrates(daCostaetal.,2022).Chatbotsspeedupcustomerserviceandreducewaittimes, whilevirtualtry-onsbridgethegapbetweenonlineandofflineshoppingexperiences(Khan,2022). Overall,thesetechnologiesreflectashifttowarddata-drivenandcustomer-focusedstrategiesinthe retailindustry,demonstratinghowAIcanoptimizetheshoppingexperienceandimprove purchasingdecisions. Artificialintelligence(AI)hasbeenmorewidelyusedinonlineandsocialbusinessinrecentyears, sinceitisapowerfultoolinmeetingtherapidchangeinconsumerdemandandimprovingsales efficiency.AI-poweredwebsitedeveloperswillcreateinteractivewebsitesbasedonuserdata, significantlyreducingtheexpenseandtimeassociatedwithdevelopinganinteractivewebsitefrom scratch.SmidtandPower(2020)assertedthatonlineproductresearchhasrisenconsiderablyin recentyears. ArtificialIntelligence(AI)discussesmainlythetechnologydeterminedbytechniquesinwhich individualsutilizetheirbrains‟neuronsandnervoussystemstomakepurpose,assumptionsand decisions,eventhoughtheygenerallyworkcontrarily(MehtaandHamke,2019).OneofAItoolsis Chatbots,Chatbotswereapotentiallycost-effectivesolutionforcustomerserviceandasubstitute forpersonalhumanservice.Thus,manye-fashionstoreshavestartedusingChatbotsasachannel thatgivesconsumers24/7onlineserviceandsavesthestore‟smoneybyminimizingthenumberof vitalserviceemployees(Oracle,2016).Inthisresearchusersactuallyexperiencedthrough accessingAItoolsandclusteredtheseobtainedintofourcategories,asfollows. 2.2Entertainment Chatbotsmayserveanumberofpurposes,suchascustomerservice,socialandemotionalsupport, information,entertainment,andtiestheusertootherpeopleormachines.Thegreatvarietyof 21 chatbotsisexemplifiedintheBotList(https://botlist.co/),awebsiteonwhichpeoplecanfind chatbotsforabroadrangeofpurposesavailableonmultiplemessagingplatforms).Forcustomers, conversationswiththesebotsmayfeelmorenaturalandefficientthaninteractingwithamobileapp astheycanobtainanswerstoquestions,receivesuggestionsforpurchases,placeorders,andkeep updatedonshippingthroughanaturallanguageinterface. Arangeofchatbotsserveasvirtualassistantsorstewards,helpinguserstoperformspecifictasks. TheIndianchatbotNikibotcanhelpuserswith,forexample,bookingataxiandorderingfoodfor delivery[12].Inaddition,DoNotPay,basedintheUK,helpsusersfilecomplaintswhenthey receiveparkingticketsandBabylonHealth’schatbotinterfaceprovidesmedicaladvice.Insuch scenarios,chatbotsmaybepreferabletoothermeansofassistance,suchasaphonecalloronline search,duetotheirconvenienceandimmediacy. Chatbotscanalsohelppeopleexploreonlinecontentorservices.Forexample,Microsoftlaunched HestonBottohelpusersexplorefoodandcookingopportunitiesAdditionally,theglobalfashion andclothingcompanyH&Mlaunchedachatbottoprovidepersonalfashionadvicebasedonphotos uploadedbyusers[13]."Smalltalk"orientatedchatbotssuchasMitsukuandJessieHumanicanalso fulfillpeople’sneedforentertainmentandsocialinteraction.Users’interactionswithchatbotsoften mimicinteractionsbetweenhumans,buttherearedifferences. BasedonresearchBrandtzaeg(2017)Entertainmentandfunareimportantaspectsofsocial relationsbetweenhumans.Likewise,entertainmentandsocializationmaybeseenasaspectsofthe relationshipbetweenhumansandchatbots.Theneedforentertainmentandasenseofsocial relationshipisalsohighlighted.Sensitivitytothisneedforentertainmentandsocialrelationsmight beevenmoreimportantinthecontextofchatbotdesignbecausechatbotsaremorehumanlikethan 22 1.