AI-Driven Decision Making in Retail Management: A Statistical Analysis (Evidence from Indian Retail Sector)

Abstract

Artificial Intelligence (AI) has emerged as a critical driver of transformation in the retail sector, enabling data-driven decision-making and enhanced operational efficiency. This study examines the impact of AI adoption on decision-making efficiency and retail performance in the Indian retail sector. A sample of 500 retail firms across major urban centers was analyzed using advanced statistical techniques, including descriptive statistics, reliability analysis, correlation, exploratory factor analysis (EFA), multiple regression, and structural equation modeling (SEM). The findings reveal that AI adoption significantly improves decision efficiency and customer analytics, which in turn enhance overall firm performance. The study contributes to the literature by providing empirical evidence from an emerging economy and offers practical implications for retail managers seeking competitive advantage through AI.