Adoption of AI in retailing: Efficient operations and privacy concerns

Abstract

This case study explores the challenges and opportunities faced by a shopping mall in leveraging AI technology as part of its digital transformation. The mall focuses on optimizing loyalty programs and enhancing the consumer shopping experience, successfully integrating online and offline business models. To better understand customer behaviour and shopping preferences within its physical stores, the mall has begun implementing computer vision technology to analyse customer pathways and preferences, enabling more accurate product recommendations. However, the adoption of this technology raises significant legal and ethical concerns, including the legality of data collection, the use of facial recognition technology, and the safeguarding of consumers’ right to information. These issues have prompted extensive debate.