AI-Driven Value Creation and Organizational Change : A Qualitative Study of the Swedish Retail Industry

Relevance: The retail industry has undergone substantial transformations driven by technological advancements, with Artificial Intelligence (AI) emerging as vital for staying competitive. However, despite its growing influence, there is limited understanding of its effects on retail operations and value creation. Purpose: This study aims to explore AI's impact and disruptive potential within the Swedish retail industry. It examines the current state of AI within retail, as well as two main areas: 1) AI value creation, and 2) Organizational change driven by AI. Ultimately, this study aims to address the gap between theoretical and practical research, extend theory, and offer some practical insights. Methodology: A qualitative, exploratory design is adopted, using an abductive approach. Data is gathered through 21 semi-structured conducted online via Microsoft Teams. These interviews focused on the retailers' understanding of AI, its future potential, its transformative impact on value creation and organizational activities. Result: Findings show the industry's current approaches and perceptions towards AI, as well as futuristic speculations about AI and retail. It shows how, what, and for whom AI creates value, and confirms previous studies displaying a complex, dual nature of AI. While it offers great potential, it also entails inherent challenges. Evidence indicates that technology-driven organizational change initiated by AI forces compulsory change in other organizational dimensions. More specifically, in the tasks conducted, the people involved and the structures applied.