Merchandising/Marketing/Retailing: Management

Artificial Intelligence in Retail: A Proposed Framework for Effective AI Integration and Implementation

---

Abstract

The retail industry is undergoing a transformative shift through artificial intelligence (AI) integration, moving beyond automation to create intelligent, data-driven ecosystems. Despite AI's potential to revolutionize customer experience, supply chain management, pricing strategies, and operational analytics, implementation remains fragmented with significant gaps between theoretical capabilities and practical outcomes. Retailers face challenges including privacy concerns, high costs, infrastructure limitations, and organizational resistance. This conceptual paper explores how emerging AI technologies reshape retail environments by examining implementation challenges, technological trends, and strategic frameworks for adoption. Analysis reveals that successful AI deployment requires balancing technological innovation with human expertise, ethical considerations, and organizational readiness. The study proposes a comprehensive framework extending the Technology-Organization-Environment (TOE) model to explicitly incorporate ethical dimensions including data privacy, algorithmic transparency, and accountability. This framework positions AI as an augmentation tool that creates competitive advantages when strategically aligned with organizational capabilities and ethical guidelines.

Keywords: artificial intelligence; retail technology; AI technology integration; strategic AI implementation framework.

How to Cite:

Ahmed, F., Sadachar, A. & Hossain, M., (2025) “Artificial Intelligence in Retail: A Proposed Framework for Effective AI Integration and Implementation”, International Textile and Apparel Association Annual Conference Proceedings 82(1). doi: https://doi.org/10.31274/itaa.21910