Factors Influencing the Adoption and Utilization of Artificial Intelligence in Strategic Decision-Making: A Case Study of Retail and E-Commerce Businesses

Abstract

Background and Objectives: Amidst the rapid growth of Thailand's digital economy, retail and e-commerce businesses face challenges in managing big data and market volatility. Adopting advanced technologies to assist in management is therefore unavoidable. This research aims to assess the potential of artificial intelligence (AI) as a strategic decision-making tool to enhance the operational efficiency of Thai retail and e-commerce businesses. The study employs a holistic approach, examining both quantitative effectiveness to demonstrate cost-benefit analysis and in-depth analysis of the perspectives, experiences, and challenges faced by executives in the field. This aims to provide guidance for sustainable digital business transformation.
Methods: This research employs a mixed-methods approach. Quantitative research utilizes secondary financial and operational data (2022–2024) from two retail and e-commerce businesses that have clearly adopted AI. The data was analyzed using Panel Data Regression and Difference-in-Differences econometric models in the GRETL software. Qualitative research involved semi-structured in-depth interviews with eight senior executives, and the data was analyzed using content analysis.
Results: Mixed-method analysis revealed that the use of artificial intelligence significantly enhances strategic decision-making, both statistically and experientially, by improving accuracy, speed, and systematic planning. Quantitative results showed that AI adoption significantly impacted business efficiency, particularly in forecasting accuracy, inventory management, and reducing delivery times, with organizational size and revenue growth rate as contributing factors. Qualitative findings indicated that executives recognize the value of AI in big data analytics, predictive strategy development, and enhancing competitiveness. Furthermore, strategic motivation was found to have a greater influence on success than organizational size.
Application of this study: The findings of this research can be applied as a guideline for entrepreneurs in planning digital strategies, allocating budgets for investment and development of artificial intelligence, and planning training to upgrade the skills of their personnel to be ready for future technological changes.
Conclusions: This research provides an overview, potential, success factors, and challenges of applying artificial intelligence in the retail and e-commerce sectors within the Thai context. This will be highly beneficial to policymakers, business executives, and researchers in developing more effective strategic decision-making models in the digital age.