Investigating the impact of artificial
intelligence on consumer’s purchase
intention in e-retailing
Rohit Bhagat, Vinay Chauhan and Pallavi Bhagat
Abstract
Purpose – Technology has been witnessing a rapid growth. The advent of artificial intelligence has
further enhanced the satisfaction level of consumers, which makes it even more vital in the current
scenario. This paper aims to explore the factors affecting practical implacability of artificial intelligence
and its impact on consumers’ online purchase intention.
Design/methodology/approach – This paper has used a technology-based model as the base to explore
the different factors affecting consumers’ purchase intention towards e-retailing. This study has formulated a
model that demonstrates the integration of artificial intelligence in retailing by the business organizations so as
to understand the needs of customers and help them accept technology. This study has further explored faith,
subjective norms and consciousness as constructs which enhance the implacability of artificial intelligence.
Findings – This study shows that artificial intelligence positively influences consumers’ buying
behaviour. This study through a model also shows that integration of artificial intelligence enhances
consumers’ purchase intention.
Research limitations/implications – The study has been focusing on a portion of target population. So
there is scope to include the whole set of the population to get closer-to-accurate results.
Practical implications – The study offers useful inputs for academicians as well as marketers for predicting
buying behaviour of consumers. Marketing managers can use artificial intelligence–embedded technology to
enhance online purchase intention.
Social implications – The study shows that an increase in consciousness towards e-retailing has made
consumers keenly analyse and purchase products on the basis of merit and usefulness of the products.
Originality/value – The contribution has been made with the best of knowledge in formulating an
integrated artificial intelligence model for consumers’ purchase intention in e-retailing.
Rohit Bhagat is based at
the Business School,
Bhaderwah Campus,
University of Jammu,
Jammu, India.
Vinay Chauhan is based at
the Business School,
University of Jammu,
Jammu, India.
Pallavi Bhagat is based at
the GDC Boys, Udhampur,
Jammu, India.
Keywords e-retailing, faith, subjective norms, consciousness, artificial intelligence,
consumer’s purchase intention
Paper type Research paper
1. Introduction
The rapid and continuous development in the field of science and technology has given rise
to many new discoveries and inventions but artificial intelligence is considered as the
pioneer among them. In order to benefit and develop a society, it is necessary that every
contemporary technology be assessed so that its strengths and weaknesses can be known,
which can be used further (Mariani et al., 2022). Artificial intelligence, since its inception in
the 1950s, has seen changes at a mammoth level. Artificial intelligence generally denoted
as artificial intelligence has become so common that every other industry is using it in one
form or the other (Huang et al., 2019). In the 20th century, artificial intelligence has emerged
as a pacemaker to all the new technologies. Many studies have shown that by adopting
artificial intelligence technology, the decision-making process of the consumer gets much
simpler by reducing search costs, saving time, giving plenty of options to choose from and
DOI 10.1108/FS-10-2021-0218
Received 30 October 2021
Revised 8 May 2022
6 July 2022
23 August 2022
Accepted 23 August 2022
VOL. 25 NO. 2 2023, pp. 249-263, © Emerald Publishing Limited, ISSN 1463-6689
j FORESIGHT j PAGE 249
having a better delivery system free from power exerted by selling firms (Huang and Rust,
2021; Mustak et al., 2021; Wu et al., 2016). Artificial intelligence possesses human-like
intelligence and abilities to solve complex problems which have increased its indulgence in
every field. In today’s scenario, when computers are being used for both practical and
theoretical implications, there is a huge rise in demand of and dependence on artificial
intelligence. The mechanism of artificial intelligence works on the ability to solve a problem
with the help of algorithms (Lee and Choi, 2016). Algorithms are set in a manner in which
the computer works on the instructions to solve a problem. Similarly, artificial intelligence
deals with the use of machine learning technology along with language learning processing
to formulate solution to a problem by using well-defined logic that supports the solution.
Artificial intelligence works on the same analogy as human being deals with a situation with
his/her wisdom and experience.
The concept has been on the rise in the current global scenario. The use of artificial
intelligence has turned out to be a boon in the 21st century for both marketers and
customers. The use of artificial intelligence has emerged as a new, innovative way of
handling problems and formulating a logical solution with the use of language through a
machine learning process. Not only marketers but also consumers are keenly interested in
artificial intelligence, and most of them are reaping benefits out of it. Most of the customers
while using artificial intelligence, have earned profits by meeting their demands with the
optimal use of money and time (Kim and Kim, 2017). Unrealistic situations of earlier times
have been made possible today and are easily achievable now because of the use of
artificial intelligence (Weber and Schütte, 2019). Artificial intelligence has expanded so
much that it has made the interface of operations user-friendly and consumer-centric.
Today’s consumer is more concerned about his comfort and convenience where artificial
intelligence is playing its role effectively by meeting the parameters of consumer
expectations very efficiently. That is why, consumers are finding it easy and they are willing
to use artificial intelligence for the purpose of finding, choosing, purchasing and disposing
of goods. The use of artificial intelligence has made life so easy for consumers that they can
avail and evaluate a product from any corner of the globe without any difficulty (Paschen
et al., 2020). The use of artificial intelligence has made the search and purchase of products
so easy that these are just a click away today.
The concept of artificial intelligence has gained wider acceptance and has increased its
reach in almost every possible sphere of the global scenario. The influence of artificial
intelligence is vast and the organisations operating globally cannot ignore it. The
acceptance of artificial intelligence globally has gained momentum in leaps and bounds. Its
usage ensures that the decision made by the organisations is accurate and economically
viable. The algorithms used by artificial intelligence helps marketers reduce costs and helps
customers increase profitability (Yin and Qiu, 2021). Artificial intelligence in today’s era is
becoming an important aspect for consumers when it comes to purchasing- and
consumption-related decision-making (Park, 2009). The consumer has become more
concerned about healthy lifestyle which includes affordable consumption patterns along
with a well-maintained, sustainable environment. Artificial intelligence tends to provide a
three-dimensional framework which makes it much easier for the customers to make
appropriate decisions (Bjorlo et al., 2021). Artificial intelligence, in recent times, has
emerged as a tool without which sustainable development cannot be achieved. Consumers
are finding artificial intelligence so opportune that they are willing to embrace it fully as it is
making life much easier and it also help them in maintaining a sustainable lifestyle for living.
Artificial intelligence allows organisations to use improved tools and techniques which are in
cognizance with the current scenario and ultimately help in formulating plans that help in
gaining an advantage over competitors globally. Artificial intelligence has emerged as a tool
which reduces customer manipulation and vulnerability while purchasing and using a
product (Luo et al., 2019). Artificial intelligence has emerged as a new tool in the 21st
century that makes it necessary and convenient for the consumers to accept the technology
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for their benefit and also, it enhances profitability in terms of cost and time. Profitability
provided by the use of artificial intelligence in various domains has enhanced its
acceptance and usage among customers.
2. Review of literature
Recent times have witnessed a phenomenal rise in the use of artificial intelligence, either
directly or indirectly, impacting the lives of individuals living in the society. There is a rapid
increase in the use of artificial intelligence, as it has enhanced the efficiency of customer
problem-solving ability. Artificial intelligence has emerged as a breakthrough technology
that is satisfying the fundamentally changing needs of consumers (Lindebaum et al., 2020).
According to Leung et al. (2018), artificial intelligence is not a single technology but a
bundle of technologies that assists in simplifying consumer purchase decision-making.
There has been a burden on consumers owing to excess information related to all the
products, services, ideas, activities and experiences available in the market. Technological
advancements with the help of artificial intelligence have reduced the burden on consumers
caused by an overload of information. Artificial intelligence actually assists consumers in
filtering, eliminating and selecting the most appropriate option, thereby reducing the search
cost and search time of consumers which ultimately leads to an effective decision (Bleier
et al., 2020). Artificial intelligence has benefitted not only consumers but also marketers, as
it has turned out to be an excellent tool for understanding the diverse consumer demands
and for effectively meeting those demands with an increased sales quotient (Hill et al.,
2015). The use of artificial intelligence by many marketing firms is turning out to be
beneficial for them and giving them a competitive edge in the market. Moreover, with the
use of artificial intelligence, demand is accurately calculated and met. The use of artificial
intelligence has not only enhanced the sales but also brand value of firms, with enriched
customer experience (Shim et al., 2001). The use of artificial intelligence has made the
approach of business organizations more customer-centric, and the customer is immensely
benefitting out of it. The focus on increase in sales has shifted towards customer
satisfaction, with the ultimate goal to achieve a customer’s delight. In short, it can be said
that artificial intelligence is advantageous to bot business organizations and customers.
2.1 Artificial intelligence and purchase intention
The consumer’s extent of willingness to pay and his attitude and orientation towards the
buying of a particular good or service is referred to as purchase intention. Today, most of
the purchasing is done using online platforms. Faith and the consciousness of customers
play a very important role when it comes to online purchases. The experience provided by
artificial intelligence to customers has actually increased customers’ faith and intention
towards certain products and services as business organizations are using it at maximum. It
provides virtual experiences to the customers sitting at their own convenient places and
helps them decide for the final purchase. Artificial intelligence comes to rescue the
customers, as it is an advanced technology which uses permutations and combinations to
get the most appropriate alternative for the consumer to choose from a pool of options
available with abundance of information. Artificial intelligence technology has been used in
augmented reality applications which allow customers to visualise products in a completely
different manner and help them make the best purchase decision (Pantano et al., 2017).
Most AI-enabled technologies have been integrated by organisations to provide consumers
with the best and most customized options (Reinartz et al., 2019). The creative and
innovative technology used by AI helps consumers understand their purchase preferences
in a very lucid manner. Artificial intelligence provides customers with automated assistance
during their experience journey while availing the services. Many previous researches
have suggested that artificial intelligence aims at developing programmes with
human-like problem-solving abilities which enhances decision-making abilities towards
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j FORESIGHT j PAGE 251
purchase intention (Liu et al., 2019; Astawa and Sukawati, 2019; Qian and Xu, 2019).
Studies have also shown that online sites having artificial intelligence embedded in them
make a customer much more confident while making a purchase decision, thereby making
the process risk-free (Haenlein et al., 2019). Artificial intelligence is a user-friendly
technology which works in the favour of consumers while making a purchase decision
during the process of availing products or services (Yoo et al., 2010). The capabilities and
potential of artificial intelligence has drawn curiosity among consumers, and as a result,
consumers are vastly using artificial intelligence (Shankar, 2018). The relevance and
success of artificial intelligence lie in the fact that a huge amount of and good-quality
relevant and structured information is available to the consumer for purchase-related
activities (Sohn and Kwon, 2020). Artificial intelligence is an advanced technology, and
customers who are purchasing products from online websites of business organizations are
often found to have the best virtual experiences. The virtual experience of customers plays
a pivotal role when it comes to their purchase intentions, and research has supported that a
good virtual experience positively impacts customers’ purchase intentions (Pantano et al.,
2017). Consumers purchasing products from online stores that are blended with artificial
intelligence are found to be more satisfied after making the purchase decision.
2.2 Use of artificial intelligence in e-retailing
Artificial intelligence comes with a blend of software and hardware that can be used to
analyse and optimize purchase of products through online mode. Although, there has been
a lot of advancement in the field of artificial technology, e-retailing is still at its infancy stage
and a majority of retail organisations have not yet used it (Hagberg et al., 2016). According
to Duan et al. (2019), artificial intelligence has been in existence since the 1950s, but
e-retailing is still in the early stages in terms of satisfying consumer demands and reaping
benefits. Many e-retailing organisations are using the concept of artificial intelligence to
enhance their productivity and earn profits through it (Weber and Schütte, 2019). E-retailers
have now started to use AI applications in their various operations to market their products
more effectively. Studies suggested that artificial intelligence emerged as a boon for
customers and it has made information gathering very simple and easy while using the
online mode (Davenport and Ronanki, 2018). The use of AI in e-retailing provides a relishing
customer experience through the collection of business and customer data for future
forecasting. As per utility theory, artificial intelligence helps consumers choose best
possible alternatives in less time at an affordable cost. Studies have further opined that
artificial intelligence–enabled e-retailing assists consumers in intelligent search, i.e,
identification and selection of the most suitable and appropriate out of the available
products. (Liu et al., 2019; Aakash and Panchal, 2019; Huang and Rust, 2021). Artificial
intelligence technology in e-retailing formats helps in sorting the data, screening the
problem and searching for the most suitable possible outcome (Yin and Qiu, 2021).
E-retailing is the sector that requires a customer-centric approach and it tries to satisfy
every customer through its products. The technology used in artificial intelligence comes
with such a mechanism that it very easily understands an individual customer’s needs and
also provides them with the best possible solutions (Keitzmann et al., 2018). Artificial
intelligence–enabled e-retailing has replaced individual-centric customer service with
AI-enabled customer service, which is easier to use and understand, as well as saves time
and is cost-effective (Ma and Sun, 2020). According to Pillai et al. (2020), artificial
intelligence is such an advanced tool that it filters the information as per customer needs
and helps e-retailers by providing them exactly the required information that caters to the
needs and preferences of the customers. The powerful self-learning and prediction abilities
of artificial intelligence help business organizations in achieving satisfactory online
purchasing behaviour for customers (Gupta and Pathak, 2014). Artificial intelligence,
besides satisfying consumers and enhancing their online purchasing behaviour, also
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provides useful information to e-retailing firms regarding the needs and demands of
consumers (Anica-Popa et al., 2021). More importantly, the artificial intelligence–enabled
technology builds a relationship with the customers, and it ultimately helps online operating
retail organisations build a brand value and satisfies the majority of customers. Over the
years, AI has emerged as a tool that increases sales by optimizing operations.
2.3 Research model and hypotheses
Constructs in the research study have been developed from an extant literature review. The
research has tried to fill the research gaps of earlier research studies and proves that
artificial intelligence makes the purchasing experience of customers easy which strongly
affects their purchase intention. Taking into consideration the present scenario and rising
demand for purchases through the online mode, it was appropriate to study the impact of
artificial intelligence on consumers’ purchase intention (Al-Debei et al., 2015). Artificial
intelligence has been beneficial to consumers as it reduces their cost of search and saves
time (Dumitriu and Popescu, 2020).
According to Pantano and Pizzi (2020), artificial intelligence has emerged as a tool which
filters information for targeted customers and provides them with desired solutions. This
ease of use provided to customers by various organizations develops faith in the
customers. Faith in artificial intelligence has been a major factor in the wide usage of
technology to enhance marketing efficiency (Davenport and Ronanki, 2018). Artificial
intelligence–enabled products and services have proved to generate a lot of faith among
customers towards their usage. Faith possesses greater importance when it comes to
understanding online purchasing behaviour. According to Thatcher et al. (2013), faith in
artificial intelligence–enabled e-retailing proves to be an important deciding factor while
making a purchasing decision. A consumer who has full faith on his/her decision while
choosing a product from the market overcomes the financial risk associated with the
purchase. Another important aspect of artificial intelligence is the ease of usage associated
with the consciousness of consumers which improves their decision-making ability (Buhalis
et al., 2019). Consumer consciousness towards product quality, its price, effect on the
environment, etc. has been taken care of very appropriately through artificial intelligence.
Studies have also found that there exists a relationship between faith and consciousness
(Stanciu and Rindasu, 2021). Consumers having faith in e-retailing will more consciously
choose the online mode and make the purchasing decision favouring e-retailing.
Consumers reject those sites or online shopping sites that do not have artificial
intelligence–enabled technology in them because those organizations failed to develop
faith in customers. The use of artificial intelligence has enhanced the satisfaction level of
consumers, as it has provided them with a shopping experience in a better, personalized
manner (Polacco and Backes, 2018). Artificial intelligence in online stores provides
consumers with automated services which supplement consumers’ purchasing decision
and provides them with a better experience. Artificial intelligence–enabled purchasing also
proves to be much easier and more comfortable for the consumer, as it provides the
consumer with the right kind of alternatives to choose from and helps them make better
purchasing decisions (Dallaert et al., 2020). Faith and consciousness prove to be at the
epicentre when it comes to dealing with online purchases. Studies have shown that artificial
intelligence supports both faith and consciousness towards making a purchasing decision
through the online mode (Duan et al., 2019). Many studies have suggested that faith is
directly associated with ease of use through e-retailing (Dallaert et al., 2020). Also, it has
been suggested from many studies that ease of use is directly associated with purchase
intentions of customers.
A subjective norm is another variable which is found to influence the purchase decisionmaking of customers (Lee and Green, 2008). It has been found that subjective norms are
directly related to purchase intentions of customers. Individuals having concern about their
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image in society are more often found to make such a decision that favours societal
development. Studies have also shown that consumers with strong societal attachment tend
to choose products or services that are least harmful for the environment. (Gillath et al.,
2021). Studies have also found that artificial intelligence helps an individual in making
purchasing-related decisions which are in accordance with societal norms and favours
environmental protection (Chan and Wong, 2012). The current research shows that artificial
intelligence–enabled services enhance the value of a product and ultimately create an
image in the eyes of the customers. Earlier studies were confined either to trust or
consciousness while predicting purchasing decisions. According to Lee and Green (2008),
family, friends and social status act as important ingredients in developing subjective
norms, which help in formulating a purchase intention towards any situation. The current
study has taken care of the linkage of psychographic variables while studying the
purchasing intention in reference to artificial intelligence. The present research narrows
down the gap and stresses on the usefulness of artificial intelligence in e-retailing through
faith, consciousness and subjective norms, thereby predicting purchase intentions of the
customers. It also opined that subjective norms have a positive impact on the decisionmaking process (Baider and Kaiser, 2019; Ma and Sun, 2020; De and de, 2020) .
H1. (a) Subjective norms, (b) faith and (c) consciousness favourably affect artificial
intelligence–enabled ease of use.
Consumers’ online search for product information has been widely influenced by artificial
intelligence. Studies have shown that artificial intelligence helps in understanding a
consumer’s preferences in a better and more efficient manner (Li et al., 2020). Artificial
intelligence is considered a major factor in developing favourable purchase intention which
benefits the consumer in future. Studies have proved that artificial intelligence–enabled
ease of use makes the purchase intention of the consumer much simpler and more
profitable (Ma and Sun, 2020). Artificial intelligence acts as an important guiding force for
consumers while making a purchasing decision through e-retailing. Online purchase
intention is more often found to be backed by artificial intelligence–enabled technology in
forming a decision which benefits the customer (Luo et al., 2019). In another study by Hill
et al. (2015), a positive relationship is established between artificial intelligence and online
purchase intention. According to Cooke and Zubcsek (2017), consumers’ online purchase
intention is favourably affected by the fact that the online mode has used artificial
intelligence–enabled technology to make decision-making much easier. Artificial
intelligence makes decision-making much easier, simpler and user-friendly, with lots of
options available for the consumer to choose from so as to arrive at the best alternative
(Jarrahi, 2018). In a study by Rodgers et al. (2021), it has been postulated that artificial
intelligence provides appropriate information regarding a product which helps an individual
to make accurate decisions according to his needs and preferences. Intention to purchase
online is strongly influenced by the fact that the online search has artificial
intelligence–enabled technology which favours the customer in every decision he makes.
Authors have predicted a strong and positive relationship between online shopping sites
having artificial intelligence technology with consumers’ purchase intention (Grewal et al.,
2017). In a study by Kim et al,(2021), it was found that perceived usefulness and perceived
ease of use with the help of artificial intelligence technology positively influence consumers’
purchase intention. According to Kim et al. (2008), consumers’ faith and confidence in
artificial intelligence positively impact their purchasing intention through online mode. The
current study tries to establish a relationship between artificial intelligence–enabled ease of
usage and its favourable impact on the purchase intention of consumers.
H2. Artificial intelligence–enabled ease of usage positively affects purchase intention.
The current study has studied the relationship between subjective norms, faith and
consciousness and its association with artificial intelligence–enabled ease of use. The study has
further established the impact of artificial intelligence–enabled ease of usage on the purchase
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intention of consumers while purchasing products through the online mode. The study also
becomes important, as the e-retailing mode is the most preferred one in present times for
purchasing purposes and has a deep impact on consumer purchase intention. The study,
therefore, helps in understanding the purchase intention of consumers in e-retailing in the current
scenario with help of “artificial intelligence–enabled ease of use” in predicting purchase
intentions. From the review, a model has been proposed in the study which shows the impact of
subjective norms, faith and consciousness on artificial intelligence and also the impact of artificial
intelligence–enabled ease of use on purchase intentions of consumers (Figure 1).
3. Methodology
3.1 Sample design
The constructs and measurement instruments for the survey were developed from an earlier
research through an extant literature review. The instruments were mainly taken from the
earlier validated instruments which fit into the current context of the research. The items for
faith and consciousness were adapted from Davis (1989), Park (2009) and Gefen et al.
(2003). The items of artificial intelligence were adapted from Lam et al. (2008) and
Parsuraman and Colby (2015). The items of subjective norms were adapted from Ajzen
(1991) and Chan and Wong (2012). The items for purchase intention were adapted from
Konuk (2015), Yadav and Pathak (2016) and Vermeir and Verbeke (2006). However, a slight
modification in some variables was made to make it possible to measure the impact of
artificial intelligence on consumer purchase intention in e-retailing.
For data collection, a structured questionnaire was circulated among consumers from a few
states of India, which are Jammu and Kashmir, Punjab, Haryana, Himachal Pradesh and
Delhi. Within the ambit of the research, the universe’s population consist of several
heterogeneous subpopulations; therefore, the population was divided into homogenous
subgroups based on demographics. All the measurement items except the demographic
items were measured on a seven-point Likert scale ranging from strongly disagree (1) to
strongly agree (7). To make the study more comprehensive and exhaustive, a total of 1,200
questionnaires were circulated among consumers, out of which 920 were found to be valid.
The questionnaire comprised both closed- and open-ended items/questions. The technique
administered for collecting samples was a combination of convenience and simple random
sampling. The data was analysed by using SPSS software version 21; further, for structural
equation modelling (SEM), SPSS-Amos was used.
Figure 1
The proposed model of artificial intelligence–enabled purchase intention
Subjective
Norms
Faith
Artificial
Intelligence
enabled ease of use
Purchase
Intention
Consciousness
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The research questionnaire was divided into two sections: Section A comprised the
demographic profile of respondents, in which it was found that 68.5% population were male
and 31.5% were female. Further, it was studied that out of the total respondents, 77.2%
were postgraduates, and most of the population (73.9%) falls in the bracket of 30- to 40year age group. Section B of the questionnaire dealt with the study of constructs which are
subjective norms, faith, consciousness, artificial intelligence and purchase intention.
3.2 Data analysis and results
The data was exposed to reliability and validity tests to investigate and check the accuracy
of the items in the questionnaire which have been identified from the review of literature. To
ensure content validity, the instruments were taken by thoroughly extracting them from an
earlier research and the instruments were also validated by getting approval from
professors of different universities working in the same area. The study was further
administered to study convergent validity and composite reliability. Fornell and Larcker’s
criterion for convergent validity says that average variance extracted (AVE) should be
greater than 0.5. Moreover, according to Hair et al.’s (1998) criterion, AVE should be greater
than 0.5 and composite reliability (CR) should be above 0.7. The results of data shown in
Table 1 show that all variables extracted have an AVE of more than 0.5 and composite
reliability of more than 0.7, confirming the data used in the research to be reliable and valid.
The study was further administered to study the correlation among variables. The
correlation value between subjective norms and artificial intelligence was 0.727; similarly,
the correlation value between faith and artificial intelligence was 0.756. Furthermore, the
correlation value between consciousness and artificial intelligence was 0.698, and the
correlation value between artificial intelligence and purchase intention was calculated to be
0.789. The values calculated show that independent and dependent variables possess a
positive correlation between them (Tables 2 and 3).
The study was further administered to study the discriminate validity of the constructs. To
assess discriminate validity, AVE scores were compared with the squared root of interTable 1 Reliability and validity for constructs
Construct
Measurement instrument
Subjective
norms
SN1: People around me prefer me to shop from AI-enabled sites
SN2: Most of my friends would like me to purchase from online
stores using AI technology
SN3: I prefer e-shopping with AI technology as it has wider societal
acceptance
SN4: My family supports my view of shopping online while using AI
technology
Faith
F1: I prefer AI-enabled e-retailing
F2: I trust online shopping from online stores that use AI
F3: I feel more confident while shopping online from firms that use AI
Consciousness C1: I possess knowledge about the use of AI applications
C2: AI reduces mental effort in shopping
C3: The experience using AI-enabled shopping has been great
Artificial
A1: AI-enabled shopping is much easier and simpler
intelligence
A2: AI-enabled shopping increases efficiency
A3: AI-enabled shopping provides best alternatives to choose from
Purchase
PI1: I tend to visit online sites for purchases that are AI-enabled
intention
PI2: I mostly end up purchasing products from online stores that
have AI-enabled technology
PI3: I am willing to spend more on purchases through online stores
that are powered by AI technology
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Standard
Mean deviation Loadings a
AVE CR
4.26
4.67
1.23
1.54
0.79
0.81
0.82 0.77 0.83
0.79
4.12
1.61
0.81
0.83
5.11
1.71
0.82
0.81
4.21
4.19
5.17
4.17
5.13
5.25
4.22
4.78
5.14
4.61
4.89
1.66
1.71
1.54
1.79
1.58
1.65
1.98
1.72
1.88
1.43
1.69
0.77
0.73
0.71
0.75
0.82
0.76
0.75
0.70
0.79
0.77
0.83
0.89
0.80
0.78
0.88
0.81
0.78
0.82
0.79
0.82
0.85
0.83
4.34
1.74
0.81
0.84
0.79 0.81
0.76 0.79
0.81 0.81
0.83 0.86
Table 2 Correlation matrix
Variable
Artificial intelligence (AI)
0.727 ( )
0.756( )
0.698( )
Subjective norms (SN)
Faith (F)
Consciousness (C)
Notes: Significance at 0.01 level (two-tailed); N = 920
Table 3 Correlation matrix
Variable
Purchase intention (PI)
Artificial intelligence (AI)
0.789 ( )
Notes: Significance at 0.01 level (two-tailed); N = 920
construct correlations (SIC). The AVE of subjective norms is 0.77, while its SIC value is 0.63;
similarly, the AVE value of faith is 0.79, while its SIC value is 0.57. Also the AVE value of
consciousness is 0.76, while its SIC value is 0.59. The AVE value of artificial intelligence is
0.81, while its SIC value is 0.69. And lastly, the AVE value of purchase intention is 0.81,
while its SIC value is 0.63. All values of AVE scores of the constructs were higher than their
SIC values, which indicates that the discriminate validity is accepted in the current study.
3.3 Model fit
The final fit of the proposed model has been developed and tested through SEM to
measure the established constructs and formulate the framework as shown in Figure 2. SEM
is a useful technique that comprises both regression and factor analyses in formulating a
Figure 2
e1
e2
e3
2
e4
Artificial intelligence–enabled purchase intention
0.72
SN2
SN3
SN4
e12
e11
SN1
0.71
0.74
0.69
4AI1
0.65
AI2
e13
0.74
AI3
SN
0.77
0.78
e17
e18
0.78
e5
F1
e6
F2
e7
F3
0.71
e8
C1
0.69
0.71
PI1
e14
PI2
e15
AI
0.72
F
0.68
0.77
PI
.
0.73
PI3
0.65
e16
0.74
C
e9
C2
e10
C3
11
0.67
0 .71
Notes: SN = subjective norms, F = faith, C = consciousness, AI = artificial intelligence and PI =
purchase intention
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j FORESIGHT j PAGE 257
model while estimating the relationship among variables. The model fit obtained from the
path model has been found to be appropriate and fit with CMIN/df= 2.987, the goodness of
fit index (GFI) = 0.978, the adjusted goodness of fit index (AGFI) = 0.991, comparative fit
index (CFI) = 0.972 and root mean square error of approximation (RMSEA) = 0.031. It is
evident from the values calculated that all the parameters of the goodness-of-fit (GFI, AGFI
and CFI) have a value higher than 0.9, indicating the model to be appropriate. Also the
RMSEA value was found to be less than 0.05, which further supports the model to be fit.
Therefore it can be concluded from the results formulated that artificial intelligence
positively impacts consumers’ purchase intention in e-retailing.
3.4 Hypotheses testing and results
To determine the key constructs impacting purchase intention in e-retailing with the help of
artificial intelligence–enabled ease of use, hypotheses were tested and found to be valid
and accepted.
The results of the hypotheses predict that all the p values are less than 0.001, showing all
the hypotheses (H1a, H1b, H1c and H2) are accepted with a high significance level.
Furthermore hypotheses H1a, H1b, H1c and H2 possess high beta values, predicting that
there exists a positive and strong relationship among the variables as shown in Table 4.
3.5 Impact assessment analysis
Regression analysis was conducted on the variables to analyse the effect of independent
variables on dependent variable. The results of regression analysis show that the independent
variables (subjective norms, faith and consciousness) possess a positive and significant
relationship while predicting the dependent variable (artificial intelligence). The adjusted R2
value calculated through regression analysis was 0.674, which shows that 67.4% of artificial
intelligence–enabled ease of use is explained by subjective norms, faith and consciousness.
Based on the analysis, the following regression equation has been formulated to see the
effect of subjective norms, faith and consciousness on artificial intelligence.
AI ¼ 2:113 þ :712 ðSNÞ þ :542ðFÞ þ :478 ðCÞ
Where:
AI = artificial intelligence;
SN = subjective norms;
F
= faith; and
C = consciousness.
Furthermore, the study was also administered to study the impact assessment analysis
between artificial intelligence and purchase intention. On applying regression analysis, it
was found that artificial intelligence–enabled ease of use positively influences prediction of
purchase intention of consumers in e-retailing. The results calculated show that the
Table 4 Hypotheses’ results
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j FORESIGHT j VOL. 25 NO. 2 2023
Hypotheses
Relationship
H1a
H1b
H1c
H2
Subjective norms ! Artificial intelligence
Faith ! Artificial intelligence
Consciousness ! Artificial intelligence
Artificial intelligence ! Purchase intention
p
b
0.512
0.489
0.479
0.543
Result
Accepted
Accepted
Accepted
Accepted
adjusted R2 value comes was 0.719, which shows that 71.9% of purchase intentions can be
predicted through artificial intelligence–enabled ease of usage.
Based on regression analysis, the following equation has been formed to study the effect of
artificial intelligence on purchase intention:
PI ¼ 1:674 þ :749ðAIÞ
Where:
AI = artificial intelligence; and
PI = purchase intention.
4. Findings of the study
In the current research, implications were drawn regarding the impact of artificial
intelligence–enabled ease of use on the purchase intention of consumers in e-retailing.
From the findings of the study, it is analysed that all hypotheses have been accepted. This
result predicts that subjective norms, faith and consciousness, all, are found to have a
positive and significant impact on artificial intelligence. Furthermore, from the results, it is
predicted that artificial intelligence enhances purchase intention. This result implies that
consumers feel more confident and are willing to use e- retailing sites that have artificial
intelligence–enabled setups. Artificial intelligence–enabled services have built faith among
customers towards online purchasing decisions. This is due to the fact that artificial
intelligence provides the desired virtual experience to the customers with just a click. The
research also puts forth that knowledge regarding artificial intelligence acts as a conscious
factor propelling consumers towards making a purchase decision. The rationale of the
study is based on the fact that the use of artificial intelligence enhances purchase intention
among consumers towards online purchases. Moreover, the study also gets impetus, as the
use of artificial intelligence is getting wider acceptance from family, friends, society, etc.,
which forms a vital part of consumers’ conscious behaviour. Consumers tend to buy from
online sites which reduces their costs as well as saves time. Artificial intelligence–enabled
technology comes with a blend of both, saving search time for customers and costeffectiveness. The current research has found that artificial intelligence has emerged as a
very important tool for the customer in terms of searching and purchasing products through
the online mode. Sites that have artificial intelligence–enabled technology not only save
consumers search time but also provide them with the best suitable alternatives for purchase
which increases the faith of consumers towards e-retailing organisations. Artificial
intelligence–enabled technology not only meets consumers’ imaginations through its creativity
but also enhances the consumer experience through online purchasing. The use of artificial
intelligence has made many tasks of consumers much simpler, like searching for products,
comparing features of a product with those of a product by its competitors, seeking in-depth
know-how about the product and so on. The study further proves that the use of artificial
intelligence technology is very user-friendly and contributes a long way in satisfying the
customer. In the current study, it has been proposed that artificial intelligence–enabled ease of
use has a significant and positive relationship with subjective norms, faith and consciousness,
which positively impacts consumers’ purchase intention towards e-retailing. The study also
signifies that artificial intelligence brings about a significant change in consumer purchase
intention and consumers feel confident and are more willing to purchase from e-retailing stores
that have artificial intelligence–enabled technology.
5. Implications of the study
The most important aspect of research is to draw marketing implications of the research.
Consumers’ willingness towards saving time and effort has made the e-retailing industry
VOL. 25 NO. 2 2023
j FORESIGHT j PAGE 259
emerge as a sector that has a huge demand in the market. Considering this fact to cope
with such a huge demand, no e-retailing organisation could survive in the market without
using artificial intelligence. To satisfy consumers’ personalised needs and meeting their
demands, organisations have to use artificial intelligence–enabled technology. This
technology along with building the faith of consumers has enhanced ease of usage. This
study favours the belief that e-retailing organisations should consider using artificial
intelligence–enabled technology to generate more and more consciousness among
consumers to visit their online stores and purchase from them. The study shows that
consumers wisely decide and prefer online platforms that provide ease of usage through
artificial intelligence–enabled technology, thus making their purchase decisions much
easier. This study further supplements that e-retailing companies should use artificial
intelligence–enabled technology to satisfy purchasing intention of customers. Based on the
responses from respondents and the analysis performed, the study puts forth that eretailing organisations should use advanced artificial technology to have a competitive
edge over their competitors. The research findings of the study have confirmed that artificial
intelligence has emerged as an important tool in terms of satisfying consumer purchase
intention through online mode. The research study has also formulated a modular
framework of artificial intelligence–enabled ease of use which can be used by e-retailing
organisations to favour and enhance the purchasing intention of consumers towards
purchasing of products. The results of the study are likely to benefit academicians and
marketers in better understanding and accurately predicting the purchase intention of
consumers with the help of artificial intelligence–enabled technology. The present research
tries to theoretically contribute by filling the gaps in the extant literature. The outcome of the
study will also be helpful in providing useful insights for further research in the area.
6. Limitations and suggestions for future research
The study does not represent the whole target population, but only a portion of it. So there is
scope to include the whole set of the population to get closer-to-accurate results. This study
was conducted using few factors. Future researchers could consider some more factors to
get closer to the purchase intention of consumers. The study also leaves scope for future
research to find ways and means of advanced artificial intelligence technology to enhance
consumer purchase intention.
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Corresponding author
Rohit Bhagat can be contacted at: rohitbhagat.ju@gmail.com
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