## 5 Discussion
### Research Implications
#### 5.3.3 Implementation Costs and Return of Investment (ROI)  
Initial Setup Costs  
The initial investment includes the cost of developing and implementing AI algorithms and AR features. This may involve hiring skilled professionals, purchasing software licenses, and investing in necessary hardware. For instance, developing a robust AI recommendation system requires substantial computational resources and advanced machine learning models, which can be costly. * Development: Includes salaries for data scientists, AI engineers, and AR developers. * Software Licenses: Costs for AI and AR software tools and platforms. * Hardware: Investment in servers, GPUs, and other necessary hardware for processing AI models. Ongoing Maintenance  
Continuous maintenance is required to ensure the AI and AR systems function effectively. This includes regularly updating the software, monitoring system performance, and addressing any technical issues that arise. Additionally, data storage and processing costs can accumulate over time, especially as the volume of user data grows. * Software Updates: Regular updates to ensure the system remains current and secure. * Performance Monitoring: Continuous monitoring to ensure optimal performance. * Data Storage: Costs associated with storing and processing large volumes of user data. As technology evolves, periodic upgrades will be necessary to keep the AI and AR systems current. This could involve integrating new features, improving existing algorithms, or adopting more advanced technologies. Such enhancements can further increase the overall costs. * Feature Integration: adding new functionalities to enhance user experience. * Algorithm Improvement: refining algorithms to improve accuracy and performance. * Advanced Technologies: adoption of newer technologies to stay ahead in the market. Return of Investment (ROI)  
Despite the high cost, the potential ROI of implementing AI and AR technologies in e-commerce can be huge. The following points outline the key benefits and potential financial gains:  
1. Increased Customer Engagement  
AI and AR technologies provide a more personalized and interactive shopping experience, which can increase customer satisfaction and engagement. Engaged customers are more likely to make repeat purchases, thus increasing overall sales. According to [74], such technologies drive customer experience and value co-creation, leading to better business outcomes. 2. Increased Conversion Rate  
By offering customized recommendations and allowing customers to visualize products through AR, this technology can significantly increase conversion rates. Customers are more likely to purchase products that they feel are specifically recommended to them and that they can visualize in real-time. Research has shown that personalized recommendations can increase conversion rates by up to 20% [75]. Reduced Return Rate  
AR features allow customers to try products virtually, thus reducing the chances of returns. This can result in significant cost savings for e-commerce platforms, as handling returns is often expensive. [PERSON] [76] highlights how digital innovation can reduce operational costs and improve customer satisfaction. Data-driven Insights  
AI systems can analyze large amounts of data to provide valuable insights into customer behavior and preferences. This information can be used to optimize marketing strategies, inventory management, and overall business operations, contributing to increased profitability. Competitive Advantage  
Implementing cutting-edge technology can set e-commerce platforms apart from their competitors. Offering advanced AI and AR features can attract tech-savvy customers and establish the platform as an industry leader, potentially resulting in market share growth. This is in line with the findings of [74], who emphasized the role of advanced technology in maintaining competitive advantage. This study has several limitations that need to be acknowledged.