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Amazon Australia is the Australian sector of the American multinational company amazon, It is one of the big four companies which specialise in tech and tech innovations. The company is based regional head office in Sydney, Australia and main head office at Seattle, Washington. Amazon being one of the tech giants focuses their business around cloud computing, e-commerce and is newly adopting video streaming services in the entertainment industry as well. The use of artificial intelligence is something that amazon Australia not only is using but also has its own sector of cloud support and artificial intelligence in which it spends about $99,597 just in the remunerations of the employees in this sector. Jeff Bezos basically founded amazon on July 5th of 1994 (Cao et al., 2015). It is one of the companies which were built during the nineties initially for selling books on the internet.

Description of the current operation of the selected E-commerce store

The basic transformation started happening with the business started growing branches in all the sectors from toys to even furniture and apparel. With the revenue streams increasing it surpassed Walmart in 2015. With the introduction of amazon prime to the current market schema two years ago by amazon CEO Bezos amazon visits to the site rose to over 3.2 million. The domain itself has 620 million visitors annually (Wu and Meng 2016). With the massive revenue and visitation for the website worldwide not just Australia for which the server capacity is subjected to an incrementation every once in a while. The products sold on Australia through amazon are 60 percent of the company’s own products and other third party sellers take up around a 40 percent of the sales itself. Associates of amazon are offered a referral in return to their products, they are also made to pay a sum of amount for using the platform initially. The payment methods for the products sold by third parties are controlled totally by amazon itself (Cao et al., 2015).

Amazon uses a multi-level sales policy in their e-commerce by starting out as business to consumer and retailer to consumer , retailer here refers to the third party sellers. With the recent programs these retailers are given the entire amazon platform along the lines of which they can build up their own business.

Artificial Intelligence’s importance for survival of business

To understand the importance of artificial intelligence in the scheme of business survival we first have to understand what is and what it’s not. As stated in Purington et al., (2017), to put it in layman’s terms artificial intelligence is a mind created artificially through the use of internet and other technological components like Alexa. This artificially created mind possess the ability to perform human like actions through the use of connected devices. These actions can be as human like as planning, learning , reasoning , perceiving etc. the sociological and economic opportunities that are brought to the forefront by this technology is are endless. Again as supported by Lei et al., (2017), let’s take an example of what artificial intelligence is to have a better understanding of the subject on its own. Like the machine learning algorithm itself. Previously computers were programmed step by step, process by process but with the advent of machine learning new tasks which in turn will help the computer develop skills and process slowly.

The field however at this moment is facing problem like not knowing the exact results and it’s still at a black box phase of the development process. To simplify and understand the artificial intelligence techniques which are of complex nature we will first have to take a look into the different methods in which it takes place through machine learning. One is supervised learning, which is an algorithm that provides the end data to the machine as a sample of what it has to produce as a result (Vanneschi et al., 2018). The machine slowly picks up progress by producing similar results and more and more similar results which slowly and gradually turns into the desired result itself. Unsupervised learning procedures are also in use now the data given to machine is in forms of input data, slowly the algorithm itself picks up patterns from the input stream of data. This unsupervised use of machine learning is very useful for ecommerce websites like amazon itself as it helps the machine in identifying categories of products by viewing their patterns and recognising them. The recognised patters are then used for dividing the products into sections desired which produces a much faster results than done manually. Reinforcement learning is also amongst one of the very new learning method however it is no use to our e-commerce base here (González et al., 2016).

Artificial intelligence is majorly important in the ecommerce sector with the growing usability and ability which have already once discussed formerly (Wu and Meng 2016). The few other uses which makes artificial intelligence essential to the business survival of amazon are, one of them deals with the customer relation management system which required huge amount of human labour to gather data which made a lot of the economic trajectory of the company decrement in order to have those human resources on a payroll this can now be achieved through artificial intelligence. As it can move through and gather huge amount of data which in this case will be items form different sources of retailer and other third party items on sale. These items can be of huge number considering the amount of data items that is stored through the entire Australian network who log into the website buying and selling things. The artificial intelligence stores the items one customer viewed as data and shows it as an advertisement in platforms all across the social Medias the ecommerce website has tie ups with (Vanneschi et al., 2018). These techniques are used by all other businesses not only in ecommerce but in all the sectors cars to business firms etc. Without the use of these the entire process of the business model which is amongst the big four company will be lagging in technological development where other companies doing these would be filling up its spots as the time progresses. That will result in the other firms with the same businesses taking over with superior technologies (González et al., 2016).

Use of Artificial Intelligence in Amazon Australia’s business

To start with it Amazon Australia itself as a company which is globally recognised is one of the most innovative companies with management strategies which takes innovation to the next level. The customer experience and all other aspects of the company were already in the flow when flywheel approach to business was introduced (Cao et al., 2015). Flywheel if put on engineering basics is basically a power management scheduler which helps to decrease the energy consumption by moving the energy about slowly in other direction of other machines which are interconnected when the machine generating the energy is not in use. This concept is something that used by amazon to keep a fresh page at innovating the artificial intelligence sector and spreading this to other sectors of the very company itself. The great factor which amazon Australia used to its advantage throughout the organisation is that artificial intelligence isn’t just at one office of the company it widespread and well spread among all the departments (Chung, Park and Lee 2017). The machine learning systems are in through use by the sectors like product recommendation which helps in the improvement the forecasts that are associated with the products. With the rapid of development occurring in this sector all the other sectors are also intimated about it and slowly other departments started making use of it as well (Vanneschi et al., 2018).

With mentioning artificial intelligence and amazon the thing that subjugates both of these and comes to our mind is Alexa one of the most popular artificial intelligence in existence which is slowly incorporated at smartphones launched by amazon. According to Chung, Park and Lee, (2017), the voice recognition algorithm runs root deep in this application. The amazon music is the sector which first adopted this artificial intelligence bot as others reluctantly refused due to previously non proven results. This virtual assistant started gradually making the customer experience for the amazon music and amazon prime users better by substantially recognising patterns of their choice of music in amazon music application and their choice of entertainment in the amazon prime. With its machine learning procedures slowly progressing to a range where it provides exactly the desired product on show. With success of the artificial intelligence in this sector and the flywheel concept that the company runs all its procedures in other sectors like amazon go store which is basically a cashier less store (González et al., 2016). It makes use of all the data gathered throughout the years of it functioning to track the customer’s desires and the patterns to each of customers whose data are individually now separated through the artificial intelligence algorithms with ease (Wu and Meng 2016).. These data are used to show them exactly what they want or something they viewed repeatedly in all social media advertisement placards to draw attention to those products which were probably already in their wish list to make ascertain they buy those. This recommendation engine alone is estimated to generate almost thirty five percent of the company’s annual revenue.  Use of data on the basis of customer’s preference and the previous purchases made are regulated and used as pattern securing in the best way possible (Sheppard 2017).

This journal compares the uses and issues associated with artificial intelligence in not only e-commerce but other sectors as well. The following points are discussed:

·         The use of this in the banking sector of any e-commerce business and its uses as an anti-money laundering tool. The pattern checking of the artificial intelligence is used for detection of the illegal money launders through defaulter list.

·         The expert systems and their uses in e-commerce especially the medical sector of amazon sales will be extremely useful as it can refer to the knowledge base to provide an inference to any patient who can directly purchase the medicines which the AI associates with the disease found.

·         The amazon prime business service already uses the mentioned recommendation services in this journal (Wu and Meng 2016).

·         The threats to privacy and jobs of many people is also discussed in this journal which are one of the points to review in this journal article.

·         The visual search engine is also one of the parts in this journal which can be used in the amazon services for customers to search image which can be recognised and searched up as goods to be bought by the AI.

·         This journal indicates the use of artificial intelligence in photo tagging by human face recognition.

·         The calculations associated with the financial transactions of amazon Australia can be calculated with ease by the use of artificial intelligence which would be accessing the customer history and identifying their capabilities in repaying EMI of a product bought.

·         The user targeted advertisement can be driven out by the artificial intelligence system. The advertisements if done correctly will relate to the user desired products.

Conclusion and Recommendation

To conclude the report the things that have been found is that amazon Australia or any business organisation which are involved in the nurturing and perfecting their business around the artificial intelligence are getting a major plus in the development of the business itself. The development itself will be dependent heavily upon that of the artificial intelligence involved with it and its efficiency in all the aspects of supervised or non-supervised machine learning techniques which will be of implementation to future. The recommendation to any current business from the points we have understood from amazon Australia is that a new change is always welcome if its for the good of the organisation. Like amazon Australia built its free flowing work structure around a new concept and took a business risk sector by sector every business should have that out look towards their business in order to grow the business environment exponentially with time. Amazon Australia however can implement the machine learning engines of their new products in client management and retails as well which will be now a field which has been sectionalised and researched upon several scientists. The new products can be focused and more dependent on the existing machine learning systems like Alexa providing better user experience.


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