Business Transformation Project for my MBA Assignment Sample

The Growing Importance of AI-Powered Chatbots in Enhancing E-Commerce Performance and Customer Experience

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Chapter 1: Introduction to A Business Transformation Project for my MBA Assignment

Background

Within the current competitive environment, the use of technology is increasing greatly. For companies to become successful, it is necessary that all the latest technologies are followed in a better and effective way. In the E-Commerce industry, there are different types of strategies and technologies which are currently being used, and the use of AI-powered chatbots is one of them (Ramki et al, 2024). For The E-Commerce industry, it is very necessary that they effectively comply with the chatbot so that the overall working can be improved and the customer experience can also be enhanced. This is necessary because the chatbot includes see use of artificial intelligence for stimulating the conversation in a way a human is being doing. But in actual conversation is being done with the computer system or the technology, and the customer resumes that a human being is communicating with them.

The use of AI is currently very necessary for the successful operation of E-Commerce companies. It is due to the reason that currently, the E-Commerce companies are having intense competition, and in case they do not use effective technology, then it will hamper their working capability. With the implementation of the AI-powered chat, the companies can try to enhance consumer engagement and market share as well (Venkata Siva Kumar and Metta, 2025). The present study will outline the setup of AI-powered chatbots for E-Commerce companies. This will outline the way of implementing the AI Power check boat and how it can be used for the successful working of the company. At last, it will outline the impact of using the technology on the customer service and the competitive position of the company within the market.

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Business Transformation Project for my MBA Assignment Sample
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Aim and objectives

Research Aim

The study aims to investigate how the use of AI-driven chatbots can be used for improving and boosting the assistance of customers and to grow the market within the E-Commerce industry of the UK.

Research Objectives

  • To examine the concept and significance of AI-powered chatbots in attracting consumers within the UK e-commerce industry.
  • To identify strategies for effectively implementing AI-powered chatbots to enhance customer service and expand market share.
  • To critically evaluate the impact of AI-powered chatbots on customer satisfaction, retention, and overall market share.
  • To recommend ways of improving the implementation of AI the enhance consumer service and market share.

Research Questions

  1. What is the significance of AI-powered chatbots in influencing consumer behaviour and engagement in the UK e-commerce industry?
  2. How can AI-powered chatbots be strategically implemented to improve customer service and increase market share?
  3. What are the measurable impacts of AI-powered chatbots on market share and customer service within the UK e-commerce industry?

Research Significance

In the current working environment, digitalisation has created a revolution within the E-Commerce sector. In recent times, the use of AI-powered chatbots has created a revolution, and as a result of this, customised shopping has improved. Hence, there are many different kinds of unaddressed problems relating to the use of AI chatbots within the E-Commerce industry. Further, the current study is of significance for finding a solution to problems so that the use of these chatbots can be improved within E-Commerce companies (Waghambare et al, 2024). In addition to this, another significance of the current topic is that the use of the latest technology will improve the working capability and position of the company. Thus, the findings of the current study will be used by E-Commerce companies in order to improve the use of chatbots for improving the customer experience. Moreover, the current studies of significant to all the other industries as well, which can easily be used to improve the customer experience and manage the market share

Research Rationale

In the current competitive environment, there are the latest technical updates which are taking place and as a result, the company need to adapt to the latest working. In case companies do not follow the same, then the consumer will not like it. Thus, with compliance with AI, the companies will be able to keep their customers happy and satisfied, and ultimately, the overall work will also be improved (Raji et al, 2024). Another reason behind the selection of the use of AI-powered chatbots in the e-commerce industry is the personal and academic interest of the researcher to understand the ways of implementing AI-powered chatbots in an effective way to increase market share.

Structure of report

Chapter 1

The introductory chapter of the current business transformation project will outline the overview of the company and the sector for which the study is being implemented, along with the topic of study, which is the implementation of the AI-powered chatbot in the e-commerce sector.

Chapter 2

The second chapter, which is the background research chapter, will outline the various Trends relating to the use of chatbots currently. Along with this, it will also evaluate the various literature and the related aspects relating to the use of AI-powered chatbots within the E-Commerce sector. It will provide an overview of the different views of various stakeholders so that the overall implementation of the AI-powered chatbot can go well.

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Chapter 3

The third chapter of the current business transformation project includes the methodology, which includes the various methods that are used for the successful implementation of the AI-powered chatbot into the E-Commerce companies. It will include the discussion relating to the various research instruments used to collect the data, analysis of the considerations made by the student and other related aspects.

Chapter 4

Further, the next chapter includes the results and findings, which will outline the concrete findings relating to the implementation of the AI-powered chatbot.

Chapter 5

The next chapter includes the explanation relating to the whole project implementation. It will include the different types of elements, such as the approach of the project proposed project management team structure project plan, cost is communication and many other aspects relating to the implementation of the AI-powered chatbot.

Chapter 6

Further, the last chapter will outline the reflection relating to the learnings which are made from the conduct of the current business transformation project.

Chapter Two: Background Research

Concept and significance of AI-powered chatbots and their importance in attracting consumers

Industry trends

Artificial Intelligence Chatbots are defined as computer programs which are designed in such a manner that they can have human-like conversations and interactions with consumers through different apps and websites. With the advancement in technology, there are many different types of use of AI, and one of them is complying with chatbots. In the e-commerce industry, compliance with the application of Chatbots based on AI is very necessary (Alkudah and Almomani, 2024). The consumer buys the product online, and many times they face some issues after receiving the product. Thus, all these issues can be solved with the help of Chatbots based on AI. Instead of employees the consumers can interact with the Chatbots based on AI and can get their problems solved. The statistics highlighted that nearly 80% of e-commerce companies are making use of Chatbots based on AI. This is a major consumer service tool which is predicted to be used by 25% of companies by 2027 (AI in eCommerce Statistics (2025), 2025). Also, it is predicted that the use of AI will result in the interaction of 80% of consumers will 2030. Also, with the help of the reviews from US consumers, it was seen that 61 % of the people feel that the use of chatbots saves their time as it is available round the clock at any time. The current proposal will discuss how the use of Chatbots based on AI can be implemented, and the customer service and the market share of the company will also be improved. The present study will evaluate the case of the e-commerce industry of the UK and how they are implementing the use of Chatbots based on AI in improving their market performance.

According to the views of Le (2023), a company must follow and make use of all the latest advancements in technology. If the company is not following the latest technology, then it can impact the profitability of the business. Within The E-Commerce sector, companies must comply with all the necessary and latest technology. When the proper Technology is used, then it will improve efficiency, and ultimately, more consumers will be attracted. In contrast to this, Prasad et al (2024) argued that if the Technology is not implemented effectively, then it results in creating negative effect on the working of the business. Thus, for companies, whether they are small or large, to comply with undertaking all the advancements in the technical field.

According to the latest trends, the use of AI-powered chatbots is currently trending. So, it is significant for the company to effectively implement it so working capability and market position can be improved. Thus, artificial intelligence is a type of Technology through which a person can get the Technology to perform tasks that humans can. With the use of AI, the employees don't need to be available, and rather the technology will be answering the questions of the consumers. Thus, compliance with the AI-powered chatbot will be beneficial for The E-Commerce industry. The reason behind this fact is that when e-commerce companies follow AI-powered chatbots then their efficiency will be improved and automatically more consumers will be attracted.

Ways through which Chatbots based on AI enhance consumer services

In the view of Qureshi (2024), Chatbots based on AI are software programmes which are designed to stimulate technology to perform like humans. This includes making use of technology like Natural Language Processing (NLP), Machine Learning and many others. Particularly, the usage of this is more the case in online businesses where Chatbots based on AI can be implemented to support customer service and after-sales services more effectively. In the views of Rahevar and Darji (2024), in the current environment, the use of Conversational AI is more prominent. However, in the current case of conversational AI, the interaction of the consumer will increase with the chatbots, and they will be getting answers to their queries.

Further, Uddin et al (2024) stated that when the use of Chatbots based on AI is implemented then it will increase the interaction of the consumer with the company. For example, after purchasing the product the consumer has any of the issues, then it might impact the usage of the product, and the perception of the consumer towards the company will be impacted. Waghambare et al, (2024) argued that in case the use of Chatbots based on AI is not done correctly, then it can impact the working of the business greatly. It is not necessary that when the AI converse with the consumer then they are happy or satisfied. Rather, it might be possible that the consumer wants human interaction, which is not possible in the case of the Chatbots based on AI.

Along with this, another way of using Chatbots based on AI within the e-commerce industry is to assist the consumer while placing the order. During the time of purchasing the products, the Chatbots based on AI assist the consumer by providing them with a wide range of suggestions for the product based on the previous search history. Also, Waghambare, Prabhu and Ashok (2024) stated that this assists the consumer in deciding the product to buy easily and effectively. The Chatbots based on AI provide personalised product suggestions, and this makes it much easier for the consumer to decide which product to buy and which not to buy. On the other side, Dangol and Rind (2024) argued that when the effective type of usage is implemented then it increases the working capability of the business. Moreover, when Chatbots based on AI are effectively implemented then it increases the number of consumers, and ultimately, this improves working efficiency. For example, there is an e-commerce company, then it traces the data relating to the product search and on the different webpages, the consumer is provided the advertisements and suggestions relating to the products that were previously searched by the consumer. Hence, as a result of this, the company makes use of chatbots and keeps track of the data of consumers. Hence, with this, the interaction of the consumer and company increases, and it results in better interaction and engagement with the consumer, resulting in an increase in the number of consumers.

Moreover, another type of way in which Chatbots based on AI can be used is to upsell and cross-sell the product. The chatbot can effectively configure the solution according to the conversation done with the consumer, and according to it, they provide suggestions to the consumer for selling the product or availing the special offers customised for the successful working of the companies. In support of this Butt and Ahmad (2023) states that when effective types of chatbots are used then it is helpful to the e-commerce industry in managing and maintaining better services. It is because of the reason that when the overall efficiency is improved then it will enhance the capability of the business and ultimately increase the market share. For example, there is a small e-commerce platform, then it can implement the AI-operated chatbots, and with the help of this, effective personalised recommendations are provided to the consumer and help them in trying for new updates in the form of upselling. Also, the use of chatbots helps the e-commerce platform to record all the data well and ensure that it is effectively used in a better and more effective way. The data is stored for future reference, and in future as well it is also utilised well for making predictions for the future and ensuring that the work is done properly and effectively.

Further, another way of implementing the use of chatbots in the e-commerce industry is that it can help in monitoring the performance of the company. With the use of chatbots, the company can record all the data relating to the satisfaction of the consumers along with other data like conversion rate, click-through rates and others. Thus, all these data can be used by the company to support and improve the working capability of the company. So, for this Ghosh, Ness and Salunkhe (2024) supported that when the use of chatbot is effectively made and tailored by the e-commerce company, then it improves the profitability. Moreover, when the effective usage of an AI chatbot is made, then it is useful in predicting future sales, and this provides a target for the company to make strategies and improve its performance. On the other side, Hendren et al, (2023) argue that while implementing this way of using chatbots increases the cost for the company. It is due to the reason that when the AI need to be implemented then it will result in an increase in cost for the company, and it can create issues as well.

Assessing the impact of AI-powered chatbots for increasing the market share

Complying with the latest technology will help E-Commerce companies improve their sales and profitability. In addition to this, when the company uses the latest technology, then the market position and brand value will also increase, and this will assist the company in managing the sales and market position effectively. Chodak (2024) contends that when AI-powered chatbots are used correctly, they create better development of the business. This is particularly for the reason that when this technology makes working much easier and ultimately the efficiency is increased. Ultimately, this results in increasing the market position of the company and also increases the interest of the consumer, which in turn provides a competitive advantage to the company.

On the other side, Qureshi (2024) argued that with the implementation of AI-powered chatbots, the cost of running and operations increases. However, when the effective type of AI-powered chatbots is used then it requires a lot of cost to manage the same. Maintaining the technology includes a lot many expenses, and ultimately it might result in increasing the overall cost for the company. Against this, Prasad (2023) states that AI-powered chatbots are used to provide personalised services to consumers, which makes it easier for the consumer to make the decision. Thus, it is helpful to the consumer to decide which product will be more suitable for them and how they can easily get it.

Along with this, Dehalwar and Sharma (2024) also stated that another major issue while using the chatbots is that there is an issue relating to the management of consumer confidence. This is because of the reason that when effective types of chatbots are used by the e-commerce industry then it might be possible that the consumer requires some personal touch while interacting. To make it simple, the consumer is interacting with the machine, and this does not include any personal interaction. Thus, it can create a major issue on the minds of the consumers. Thus, for this, companies must effectively try to manage the implementation of the AI so that they can improve the interaction well. Denny and Weckesser (2022) argue that when the company provides for the facility of personalisation while interacting with the consumer, then it can greatly affect the working of company greatly.

References

Books and Journals

  • Raji, M.A., Olodo, H.B., Oke, T.T., Addy, W.A., Ofodile, O.C. and Oyewole, A.T., 2024. E-commerce and consumer behavior: A review of AI-powered personalization and market trends. GSC Advanced Research and Reviews, 18(3), pp.066-077.
  • Ramki, R., Gopi, V., Markan, R., Natarajan, S. and Rajalakshmi, M., 2024. AI-Powered Chatbots in Customer Service: Impact on Brand Loyalty and Conversion Rates. Economic Sciences, 20(2), pp.190-203.
  • Venkata Siva Kumar, S. and Metta, S., 2025. AI-powered Customer Service: The Role of Chatbots in Enhancing E-commerce Interactions. In Navigating Data Science in the Age of AI: Exploring Possibilities of Generative Intelligence (pp. 67-82). Emerald Publishing Limited.
  • Waghambare, M., Prabhu, S., Ashok, P. and Natraj, N.A., 2024. Elevating Business Experiences: AI-Powered Chatbots Reforming Marketing and E-Commerce. In Transforming the Financial Landscape with ICTs (pp. 1-27). IGI Global.Alkudah, N.M. and Almomani, T.O., 2024. The Integration of Artificial Intelligence Techniques in E-Commerce: Enhancing Online Shopping Experience and Personalization. Global Journal of Economics & Business, 14(6).
  • Butt, A.H. and Ahmad, H., 2023. AI chatbot innovation-leading toward consumer satisfaction, electronic word of mouth and continuous intention in online shopping. Journal of Telecommunications and the Digital Economy, 11(4), pp.156-184.
  • Chodak, G., 2024. Artificial intelligence in e-commerce. In The Future of E-commerce: Innovations and Developments (pp. 187-233). Cham: Springer Nature Switzerland.
  • Dangol, L. and Rind, F., 2024. CHATBOTS AS CONVERSATIONAL AGENTS AND CONSUMER BRAND ENGAGEMENT IN THE UK RETAIL INDUSTRY. International Journal of Management (IJM), 15(5).
  • Dehalwar, K.S.S.N. and Sharma, S.N., 2024. Exploring the distinctions between quantitative and qualitative research methods. Think India Journal, 27(1), pp.7-15.
  • Denny, E. and Weckesser, A., 2022. How to do qualitative research? Qualitative Research Methods. Bjog, 129(7), p.1166.
  • Ghosh, S., Ness, S. and Salunkhe, S., 2024. The role of AI-enabled chatbots in omnichannel customer service. Journal of Engineering Research and Reports, 26(6), pp.327-345.
  • Hendren, K., Newcomer, K., Pandey, S.K., Smith, M. and Sumner, N., 2023. How can qualitative research methods be leveraged to strengthen mixed methods research in public policy and public administration?. Public Administration Review, 83(3), pp.468-485.
  • Le, X.C., 2023. Inducing AI-powered chatbot use for customer purchase: the role of information value and innovative technology. Journal of Systems and Information Technology, 25(2), pp.219-241.
  • Petropoulos, F., Laporte, G., Aktas, E., Alumur, S.A., Archetti, C., Ayhan, H., Battarra, M., Bennell, J.A., Bourjolly, J.M., Boylan, J.E. and Breton, M., 2024. Operational Research: methods and applications. Journal of the Operational Research Society, 75(3), pp.423-617.
  • Prasad, D., 2023. Artificial Intelligence and the Growing Influence on Shaping Consumer Demands: With Special Reference to Chatbots. Issue 2 Indian JL & Legal Rsch., 5, p.1.
  • Prasad, K.V.S., Xavier, L.A., Jain, S., Subba, R., Mittal, S. and Anute, N., 2024, May. AI-Driven Chatbots for E-Commerce Customer Support. In 2024 International Conference on Advances in Computing, Communication and Applied Informatics (ACCAI) (pp. 1-5). IEEE.
  • Qureshi, J., 2024. AI-powered cloud-based e-commerce: driving digital business transformation initiatives. Issues in Information Systems, 25(3), pp.471-482.
  • Qureshi, J., 2024. AI-powered cloud-based e-commerce: driving digital business transformation initiatives. Issues in Information Systems, 25(3), pp.471-482.
  • Rahevar, M. and Darji, S., 2024. The adoption of AI-driven Chatbots as a recommendation for e-commerce systems to target customers in the selection of products. International Journal of Management, Economics and Commerce, 1(2).
  • Uddin, M.N., Thiam Low, W., Afjalur Rahman, M. and Mokhtar, S., 2024, May. An Exploration of Millennials’ Attitudes Towards the Use of Artificial Intelligence Chatbots for Customer Service within E-commerce Platforms. In Proceedings of the International Conference on Business, Management and Leadership (Vol. 1, No. 1, pp. 1-19).
  • Waghambare, M., Prabhu, S., Ashok, P. and Natraj, N.A., 2024. Elevating Business Experiences: AI-Powered Chatbots Reforming Marketing and E-Commerce. In Transforming the Financial Landscape with ICTs (pp. 1-27). IGI Global.
  • Waghambare, M.A., Prabhu, S. and Ashok, P., 2024. Artificial Intelligence (AI)-Powered Chatbots for Marketing and Online Shopping. In Digital Technologies in Modeling and Management: Insights in Education and Industry (pp. 21-39). IGI Global.

Online

  • AI in eCommerce Statistics (2025). 2025. Online. Available through: <https://www.sellerscommerce.com/blog/ai-in-ecommerce-statistics/#:~:text=80%25%20of%20retail%20and%20ecommerce,regularly%20use%20chatbots%20while%20shopping.>
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