Investigating the Impact of Artificial Intelligence on the Performance and Sustainability of Transportation in the Retail Industry: A Structural Equation Modeling Approach

The recent advancements in artificial intelligence (AI) present new opportunities for improving the performance of various industries, including retail. In supply chain transportation, AI is being used to tackle challenges, including on-time deliveries, delivery flexibility, lead time, capacity utilization, shipping errors, and CO2 emissions. This study aims to explore the impact of adopting AI to improve transportation performance and sustainability. For this, structural equation modeling (SEM) was employed. We developed two hypotheses, created a conceptual model, and validated it through a survey with feedback from 73 respondents. It was clear that supply chain professionals in the consumer goods retail industry widely acknowledge the benefits of AI in enhancing transportation efficiency and sustainability. The model demonstrates AI's positive effect on transportation and sustainability measures. It has been found that the model can help businesses facilitate AI adoption in the consumer goods retail industry to improve transportation performance and sustainability in the United Arab Emirates.