The Role and Influence of Artificial Intelligence-Driven Decision Support Systems on Consumer Online Purchase Decisions in Small and Medium Sized Enterprises (SMEs)

Abstract

Purpose: The use of E-commerce and Artificial Intelligence (AI) has transformed online shopping habits among individuals, specifically in Small and Medium Enterprises (SMEs) in developing economies. The influence of perceived quality of product information, price sensitivity, and social influence on online purchase decisions is investigated in this paper together with the moderating role played by AI decision support. Design/methodology/approach: PLS-SEM of SmartPLS techniques were used to examine an online survey of 326 Bangladeshi native respondents. Findings: Findings reveal positive effects in online purchasing decisions from social influence and perceived information quality, while a negative effect is found from price sensitivity. Further, AI-enabled decisions enhance product information quality, social influence, and reduce price salience. The model is highly explanatory and predictive; this serves as an indication of the robustness of our framework. Originality: The study can also contribute to literature by incorporating AI as an important factor in determining online consumer behavior and the possibility of using AI technology to improve the performances of SMEs operating in online shopping.