Artificial Intelligence, Big Data, and Their Impact on Improving Marketing Effectiveness and Customer Experience in the Retail Sector in the Kingdom of Saudi Arabia

Abstract

In the rapidly evolving retail and marketing sectors, the integration of Artificial Intelligence (AI) and Big Data has become pivotal, transforming traditional business practices. This study investigates the impact of these technologies on the retail sector in Saudi Arabia. Through semi-structured interviews with 20 industry professionals from diverse roles and sectors, the research explores how AI and Big Data enhance marketing strategies and customer experience. The findings reveal that AI and Big Data significantly improve marketing effectiveness through precise consumer targeting, personalized marketing, and predictive analytics. These technologies allow businesses to optimize resource allocation, increase customer acquisition and retention rates, and achieve higher ROI on marketing campaigns. AI-driven tools such as chatbots enhance customer interactions by providing timely, personalized responses, leading to improved customer satisfaction and loyalty. However, challenges in integrating AI and Big Data include data privacy concerns, complex data management, and the need for cultural shifts within organizations. The research underscores the importance of robust data governance, continuous staff training, and strategic investment in technology to overcome these obstacles. This study provides actionable insights for leveraging AI and Big Data to gain a competitive edge and contributes to the literature on technology adoption in emerging markets. Future research should consider longitudinal studies to assess the long-term impacts of AI and Big Data on the retail sector.