The Effect of Artificial Intelligence on Organisational Performance: A Case of Mega Market Zimbabwe

Mega Market Zimbabwe, a leading retail company, however, has taken steps towards modernising its operations by using transformative modern technologies and has increasingly been adopting Artificial Intelligence to streamline its operations, improve customer experience, and revolutionise supply chain management and data analytics. However, the adoption of AI in the retail industry, especially within the context of a developing economy like Zimbabwe, comes with unique challenges and opportunities. Research indicates that personalised recommendations and customer service chatbots can increase sales by 20-25%, yet the implementation of such tools in Mega Market Zimbabwe remains underexplored. AI-driven automation could result in job displacement, although research shows that, in some retail sectors, AI has led to a 25% decrease in low-skill positions but an increase in demand for data scientists and AI specialists. There is a need for a comprehensive study to evaluate the impact of AI on Mega Market Zimbabwe, understanding how AI influences operational efficiency, customer satisfaction, profitability, and the workforce will allow Mega Market to refine its strategies, mitigate potential risks, and harness AI's full potential. Employing a robust descriptive research design, we gathered insightful data through a structured questionnaire distributed to 64 employees, yielding 54 valid responses. The participants were carefully selected from various levels within the organisation, including operations, management, and technical departments, ensuring a comprehensive perspective. The findings are compelling that the manufacturing company is quite sceptical of and resistant to implementing AI. It will be essential to address these issues through training, engagement, and good communication in order to promote a favourable view of AI and improve overall organisational performance. In conclusion, this study suggested proactive management of resistance to change by involving employees in decision-making, communicating pros and cons in order to give room for suggestions and unanimous decision-making. This dissertation recommends that organisations be socially sustainable and consider ethical standards by providing retrenchment packages to the staff who can no longer add to the productivity of the business at the very least.