Generative AI to support storekeeper’s decisions
To investigate the impact of a conversational artificial intelligence (AI) assistant for micro-firms dealing with replenishment and sourcing decisions, we have developed a web-based behavioral lab experiment using the Prolific platform. Random subjects will be asked to act as managers and decide what to buy and stock up on in a micro grocery store (also known as a nanostore).
For the study, we have created treatment and control groups. The treatment group will receive an AI chatbot powered by large language models (i.e. GPT-3.5) trained to support their decision-making while the control group will be shown graphic dashboards to aid in their decision-making. We will track a range of performance metrics, including profits, chatbot usage, and time. We hypothesize that the treatment group (i.e. AI-chatbot) will show a significant increase in profits.
The effect of AI chatbots on the inventory decision making of micro-retailers: A field experiment in Mexico
To investigate the impact of a conversational artificial intelligence (AI) assistant for micro-retailers dealing with replenishment and sourcing decisions, we have designed an experiment to be executed in the field. The experiment will be conducted with micro-retailers in the state of Mexico. The micro-retailers will be given a mobile application to input the daily sales, purchases, and prices of two products they identify as critical in maintaining stock availability. For the study, we have created treatment and control groups. The treatment group will receive an AI chatbot powered by large language models (i.e., GPT-3.5) trained to support their decision-making.
In contrast, the control group will be shown graphic dashboards to aid their decision-making. We will record the decisions taken and the usage of the chatbot to identify if access to the chatbot helps the micro-retailers in their ordering and stocking decisions. All participants will receive training in marketing and access to a tool where they can find the market price of products from large stores.
Our lab experiment demonstrated that decision makers utilizing a Generative AI chatbot via a WhatsApp Bot experienced a 5% revenue increase compared to those employing traditional systems.
