Over the last decade, the retail industry worldwide has been constantly evolving. This is mainly because traditional retail business models are facing major disruptions in the new age of retail. The multi-channel physical retail business model is being rapidly replaced by a hybrid model that also includes online delivery. This is enabling retailers to connect with customers directly. Artificial intelligence (AI) is also significantly shaping the retail industry's transformation; its adoption is influencing the value chain components of the retail business and positively impacting the industry.

The swift business transformation of the retail industry over the past decade can be attributed to a new, innovative technology landscape and rapidly changing consumer behaviour. The traditional business model is facing constant challenges from new retail strategies that deliver greater customer value and an improved top line. The importance and motivation behind this research stem from the fact that the retail industry worldwide, including in India, is undergoing a significant transformation, with retailers increasingly focusing on e-commerce and hybrid business models. The adoption of AI by retailers is playing a critical role in shaping this business transformation, as the adoption of this technology across the various components of the retail value chain not only directly impacts the retailer’s revenue and profitability but also enables them to interact with their customers and influence their decision-making. In this paper, a qualitative analysis based on a literature review of relevant research has identified key factors that impact retailers' adoption of artificial intelligence technology to enhance business transformation.  This study’s conceptual framework for AI adoption in India’s retail industry is developed through a detailed analysis. This study’s findings indicate that perceived competitive advantage, operational efficiency, retailer intention to purchase AI technology, and task automation are the variables that influence retailers' adoption of artificial intelligence technology. The recommendations, based on the research framework, will help retailers create sustained operational efficiency. The research also elaborates on the outcomes of adopting artificial technology, which will enable the retailer to achieve business transformation, with increased revenue, market share, and operational efficiency.