Factors Influencing the Readiness of Small Retail Stores in Guntur City to Adopt AI-Powered Inventory Management Systems: A Study Using Primary Survey Evidence and Secondary Literature

Author

Raja Pavan, N Devi Sreeja

Abstract

 This study examines factors associated with the readiness of small retail businesses in Guntur City to adopt AI-powered inventory management systems. The analysis combines a small primary survey dataset (20 usable responses) with a focused review of recent scholarly literature on AI adoption in small and medium-sized enterprises (SMEs), technology adoption, and AI-supported inventory management. The survey instrument covered AI awareness, digital skills, technological infrastructure, perceived ease of use, expected inventory benefits, affordability, financial readiness, organizational support, employee willingness, trust, adoption intention, and overall readiness. Descriptive results indicate moderate overall readiness: the mean score for overall readiness was 3.20 on a five-point scale, while willingness to adopt within two years averaged 2.75. Among the measured items, trust in AI-generated inventory recommendations had the highest mean (3.20), whereas infrastructure averaged 2.65. In the correlation analysis, cost affordability showed the strongest association with overall readiness (r = 0.49), followed by employee willingness (r = 0.47) and adoption intention (r = 0.39). Because the sample is small and non-probability based, these results are exploratory and are not presented as population estimates or causal findings. The study identifies affordability, employee capability, digital infrastructure, training, and trust as useful areas for a larger follow-up investigation.

Keywords

artificial intelligence; inventory management; small retail stores; technology adoption; organizational readiness; Guntur City; SMEs

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References

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