Creation of sustainable growth with explainable artificial intelligence: An empirical insight from consumer packaged goods retailers

Abstract

Consumer packaged goods retailers can pivot quickly to find new areas of sustainable growth and enable their businesses to compete effectively. Traditionally, they are losing ground to more agile and technologically focused competitors who quickly adapt their operations to shifting market conditions. As a result, such retailers must alter their core technologies. Explainable artificial intelligence is a set of procedures and strategies that allow machine learning algorithms and artificial intelligence models’ results and output to understand and trust. In the era of sustainable digitalisation, there is lack of research on the creation of sustainable growth with explainable artificial intelligence. Therefore, this study is undertaken to uncover how consumer packaged goods retailers can create sustainable growth with explainable artificial intelligence by proposing a unique conceptual model. The source data were collected from 310 individuals from consumer packaged goods retailers and the analysis was performed with quantitative research methodology. The findings suggest that explainable artificial intelligence has the potential to be a formidable weapon in the fight for sustainable growth. With the employment of automated machines, the best decisions for sustainable competitive advantage can be made. In addition, explainable artificial intelligence-powered automated wealth management services and algorithmic trading help to make better financial decisions. The theoretical implications argue the explainability of artificial intelligence systems to offer insights for making impactful decisions. The managerial implications highlight the benefits of the adoption of explainable artificial intelligence for sustainable growth, such as increase in trust, complying with legal regulations and providing data-driven actionable analytical insights. Sustainable growth set more responsibility towards customers for profitable future.