The term Artificial Intelligence was coined byJohn Mcarthy in 1956 in a conference and and its concept was proposed by Allen turing, in 1950 ,Allen Newwell , J.C Shaw , and Herbert Simon created Logic theorist and first ever running AI software program was formed.Artificial intelligence refers to the ability of the software to perform various task like humans which includes cognition ,to reason manipulations similar to actions carried out under the control of the human brain.⁶It is an information system designed to empower computers with humanimitating abilitiesand skills such as Vision, hearing and learning. Thus, AI is an informationcomputer system built on the basis of human brain and perceptual activity and capable of perceiving the environment, information, learning and responding to external influences, imitating a person.⁵

SAR Journal. Volume 4, Issue 1, Pages 34‐41, ISSN 2619‐9955, DOI: 10.18421/SAR41-06 March 2021. 34 ,SAR Journal – Volume 4 / Number 1 / 2021. Artificial Intelligence to Improve the Business Efficiency and Effectiveness for Enterprises in Kazakhstan

The research set out to determine the readiness of Kazakhstani businesses for AI, describe cases of AI use in business, identify arising questions, study legal aspects, and present compliance with the existing legal framework.

Al-Zahrani, A., &Marghalani, A. (2018, April 25). How Artificial Intelligent Transform Business. Retrieved from: https://ssrn.com/abstract=3226264 [accessed: 10 December 2020].

The paper discusses different approaches through which AI can transform businesses, including cost reduction, cybersecurity, marketing, innovation, and improved management decision-making.

For this study, we decided to choose a descriptive research method. It is a scientific method that involves observing and describing a participant's behaviour. Researcher has used bothquantitative and qualitativemethods. Also secondary data will be used. The qualitative part of the study includes:Interviews were taken either face-to-face or online using Skype. The quantitative part of the study includes an online survey.

The number of completed interviews is 30. The total number of questions in the questionnaire is 5?

What are the three main challenges related to the development of artificial intelligence in the town?

What are the risks of introducing artificial intelligence technologies in your company?

What are the most popular AI based solutionamong the customers?

What are the factors associated with the successful implementation of the AI in the business?

What are the impact of AI in the company in the next 5 years?

Based on their extensive experience candidate responded to the interview, the question would determine how effective the AI would be in the respective business area.

Qualitative Research

In the study, we proceeded to take into account the tier II cities to conduct a study, where business is striving for digital transformation. We set a goal to determine the attitude and degree of readiness of business entrepreneur to the implementation and practical application of artificial intelligence, to describe the cases of using artificial intelligence by business here to identify the main questions that arise in business at this stage, to study the application of the AI to various categories ,provide suggestions for eliminating existing barriers and stimulating businesses to implement the technology.

Based on the research conducted , Researcher is planning to conduct interviews with experts in the field of retail. Sample: For the study researcher has taken 30 respondentsfrom retail or small businesses around Hazaribag ,The method of collecting interview is online mode , as it is the most convenient form of data collection.

Methodology and method: For this study, researcher has  decided to approach respondent with a descriptive research method, where researcher plan to conduct the interview, and then show the results in charts and graphs.

Types of AI Used in Business

1. Omnichannel customer shopping experience- AI allows retailers to create a seamless customer shopping experience across multiple online, mobile, and in-store channels.

chatbots and virtual assistants, retailers can provide 24/7 customer support, answer customer queries, and offer personalized recommendations.

2. Better -tailored marketing activities- AI helps marketers create better customer segmentation based on insights from audience data.It increase the conversion rate and gain more revenue.

3. Boost customer engagement-  AI-powered tools like chatbots and virtual assistants helps in real-time engagement ,which  improves customer satisfaction and loyalty. It uses AI to understand customer preferences ,and make personalized promotions.

4. Personalized customer service- AI  help retailers offer personalized customer service by analyzing customer data and providing tailored recommendations.

5. Optimized business processes- Implementing AI in retail business provides real-time insights and improves the accuracy and efficiency of decision-making processes.

6. Reduces Human errors and promotecreativity- AI support organizations in reducing labor costs, Automation doesn't mean eliminating redundancies in workplaces and replacing humans with technology.³

1. Effectiveness of AI in the business sphere.

Retail companies in Hazaribagare actively introducing AI in their business activities . According to the result of the survey . 60 % of the hazaribag retailers are already planning to  installthe AI in their business activity and has been striving for the same. The effectiveness is determined and recorded with certain parameters , 23% of the respondent finds it cost effective as the software installation which incurs one time cost has reduced the recurring expenditure in the long run, 13% respondent agreed to the increase in ROI in their business as AI based tools used for digital marketing would help them gain good insight into customer needs and preferences changing pattern. About 17% of the respondent have expected the improvement in their quality as early detection in the quality failures would help the business to anticipate the problems in advance and take corrective actions in the due time. 20% of the respondent has yet not fixed any criteria to measure its effectiveness. 26% of the respondent have realised it would boost the customer satisfaction due to its personalised recommendation, target offers and customise content.

Implementing AI has been challenging in many aspects and 10 % of the respondent finds it challenging due to its high implementation cost,and in order to work on AI based tools , lot of training is required and hence 23% of the respondent agreed that lack of qualified professional poses a challenge to the company.30 % of the respondent finds upgrading existing as IT system as a challenge . 20% find customers distrust on AI based tools is potent challenge in the small cities like Hazaribag .16% of the respondent finds the cyber security as a threat and potent challenge to the small retailers in the region.

3. AI impact on company in next 2 years

According to the respondents prediction the role of AI in the Job creation is least as 20% expect new Job creation in the company after the implementation of the AI. 26% respondent has expected to increase in their productivity, 30% respondent has predicted the innovative development as major impact after AI implementation. 23% of the respondent has predicted the AI based solution would increase their income.

4. Factors influencing successful implementation of AI

There has been various factors which would influence the successful implementation of the AI in the company , 33% of the respondent consider security to the AI based platforms as the most important factor as it would give satisfaction to the employer, employee and customer as their data is secured and private once the trust is inculcated among people, AI would be successfully implemented.

According to the retailers the most popular AI based solution which every retailers prefer in the city is personalisation as it gives maximum customer satisfaction due its personalised features such as recommended product, discount offers.

1. PwC. (2023). Share of managers who are ready to transfer some of their job functions to AI [White paper].

2. SAR Journal. Volume 4, Issue 1, Pages 34‐41, ISSN 2619‐9955, DOI: 10.18421/SAR41-06 March 2021.  34 ,SAR Journal – Volume 4 / Number 1 / 2021.  Artificial Intelligence to Improve the Business Efficiency and Effectiveness for Enterprises in Kazakhstan

3. Al-Zahrani, A., &Marghalani, A. (2018, April 25). How Artificial Intelligent Transform Business. Retrieved from: https://ssrn.com/abstract=3226264 [accessed: 10 December 2020].

4. Patocka, Z. (2023, March 3). 6 pivotal benefits of AI for retail [Blog post]. Bluestone PIM.

5. Nilsson, N. (2010). The quest for artificial intelligence: A history of ideas and achievements. Cambridge University Press. https://doi.org/10.1017/CBO9780511819346.

6. Tietz, T. (2020, September 4). John McCarthy and the Rise of Artificial Intelligence. SciHi Blog.