Understanding and Examining the Application of AI in Social Media Marketing: A Systematic Literature Review of Studies from the E-Commerce Sector

Abstract

This dissertation attempts to explore challenges of Artificial Intelligence (AI) implementation into Social Media Marketing (SMM) within e-commerce firms, and understand how this type of innovation impacts a firm`s performance and customer relationship management (CRM). To answer the research questions, mono-method research was performed, which drew on a systematic literature review. Following the PRISMA methodology the researcher selected eight peer-reviewed publications, which were then studied and analysed using a thematic analysis. The findings of the dissertation demonstrate that AI-enhanced SMM contributes positively to the firm`s performance from both strategic and tactical points of view. AI-enabled SMM significantly improves market intelligence and understanding of customer behaviour and can be considered a disruptive innovation. At the same time, a lack of knowledge and awareness about AI, particularly among managers and leaders, serves as a barrier to the implementation of this technology. Lack of resources and difficulties when testing and developing AI solutions are mentioned as other barriers as well. AI-enhanced SMM in some of its forms (e.g., virtual assistance) changes the nature of brand-consumer interactions to parasocial. Overall, there is a lack of empirical evidence identified and the majority of the studies look at the problem from the technology side. Based on the findings, the dissertation recommends in-house development of AI-based SMM and offers a simple roadmap to assist implementation. This process should be guided by (a) AI market analysis; (b) aligning AI choice with strategic goals, and (c) enhancing AI capability through increasing knowledge and awareness.