The use of Artificial Intelligence in Understanding Consumer Behavior: Lessons for SMES from Amazon and Netflix

Abstract

Artificial intelligence and Machine Learning have completely changed the business landscape. AI has enabled the business world to rebuild, rethink, and personalize how businesses engage and analyze their customers, how they market their products, and how they deliver their services. However, so far, applying AI to marketing has not yet become a common practice for all industries where Amazon and Netflix are the role models. But even SMEs can benefit from AI to derive insights, tailor personalized journeys for their consumers, and even make process decisions. The primary focus for this paper is on Amazon and Netflix on how they utilize AI in their wisest capacity and what SMEs can achieve, bearing in mind their needs, resource limitations, and target goals. A detailed literature review and secondary data have been examined in this paper to unveil how Machine Learning and Artificial Intelligence impact customer interaction, consumer choices, and the results of the business. Data abuse, privacy violation and algorithm discrimination are also the problems we have addressed so as to ensure safe AI operation for SMEs.