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Artificial Intelligence in Retail: Benefits and Risks Associated With Mobile Shopping Applications

Author

Listed:
  • Victoria Stanciu

    (Bucharest University of Economic Studies, Romania)

  • Sinziana-Maria Rindasu

    (Bucharest University of Economic Studies, Romania)

Abstract

The objective of the study is to examine the practical implications of using artificial intelligence (AI) based solutions in the case of retail mobile applications, to enhance the online shopping experience and improve the engagement by also having in mind the privacy of the users. We examined 117 shopping applications available in the Google Play market and investigated the permissions required for each application and the categories of personal data collected from the users. Based on the information gathered, we provided practical methods to integrate artificial intelligence-based solutions to offer a new set of services, partially unavailable in physical stores. Some of the permissions identified, if exploited by malicious users, can affect individuals’ privacy. The fact that artificial intelligence is a fast-developing technology constitutes the main challenge in the effort of creating proper regulations. This research provides practical directions regarding the benefits of integrating artificial intelligence solutions in retail mobile applications in an ethical manner, protecting the users’ privacy.

Suggested Citation

  • Victoria Stanciu & Sinziana-Maria Rindasu, 2021. "Artificial Intelligence in Retail: Benefits and Risks Associated With Mobile Shopping Applications," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(56), pages 1-46, February.
    • Handle: RePEc:aes:amfeco:v:23:y:2021:i:56:p:46
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    References listed on IDEAS

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    More about this item

    Keywords

    artificial intelligence; machine learning algorithms; retail; ethics; privacy; mobile shopping applications;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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