Impact of Artificial Intelligence on

Pharmacy management performance

Pharmacy system performance concerning four dimensions:
employees learning and growth, internal process improvement,
customer satisfaction, and profitability, Egypt, 2024

MBA Final Project

Under Supervision of

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Dr. Hany Eid
2. Acknowledgement
We would like to express our sincere gratitude to Dr. Hany Eid, our project
supervisor, for his invaluable support and guidance throughout every phase
of this research. Dr. Hany dedicated his time and expertise generously,
ensuring that no effort was spared in assisting us. His unwavering
commitment and encouragement have been instrumental in the successful
completion of this project. Thank you, Dr. Hany, for your unwavering
support and dedication.

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3. Contributors

1. Menna-t-Allah Mohamed Ahmed Saad

ID: 28453
Demonstrator of Microbiology and Immunology, Faculty of
Pharmacy, Cairo university.

2. Ashraf Tharwat Kameel

ID: 28141
WWTP, Surface water operating Team Leader at METITO
WATER TREATMENT SAE.

3. Shaimaa Magdy Serag

ID: 27650
Veterinarian

4. Dina Mostafa Labib

ID: 28046
Biochemistry Specialist and business owner.

5. Sherif Ahmed Mohamed

ID: 28029
Operation pharmacist

6. Peter Atef Saad

ID: 27271
Physiotherapist

7. Abdelrahman Mahmoud Abbas

ID: 27931
Operation pharmacist

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4. Abstract
The pharmaceutical market is growing over time, but some
challenges are arising as restricted profits due to forced price of most
products, pharmacist education and training, etc. So, will the use of
artificial intelligence (AI) technologies help to solve those challenges?
This research investigates the uses of Artificial Intelligence in Pharmacy
management and its impact on pharmacy performance and
improvement. The pharmacy performance will be measured from four
perspectives based on the balanced scorecard tool starting with employees
learning and growth, internal process improvement, customer satisfaction
ending with profitability. This study depends on holding a questionnaire as
a primary data source and searching online databases as secondary data
sources.

Our findings highlight how AI can change the future of pharmacy

management systems and improve their performance by innovating the
traditional training methods, improving inventory management and overall
operational efficiency, resulting in enhanced customer satisfaction, all of
which contribute to increased long-term profitability. The implementation
of Artificial Intelligence technology in Egyptian pharmacies may
encounter some challenges as employees’ resistance and lack of adequate
training, high initial implementation costs, data privacy, ethical and social
concerns. Despite the existence of some challenges, the long-term
advantages of AI in pharmacy management are substantial. So, it is
essential for pharmacists and pharmacy managers to regularly engage in
training programs and become familiar with AI technologies to stay current
with advancements.

5. Keywords: Artificial intelligence, Internal process improvement,

Pharmacy performance, Balanced scorecard, Customer Satisfaction,
Profitability & profit.

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6. Table of Contents

Content Page number

1. Cover page 1
2. Acknowledgement 2
3. Contributors 3
4. Abstract 4
5. Keywords 4
6. Table of contents 5
7. Table of figures 7
8. Table of tables 10
9. Abbreviations 11
[Link] one: Background 12
10.1. Introduction: The Pharmacy Field in
Egypt 12
10.2. Problem statement 14
10.3. Project objectives 20
10.4. Research limitations 20
10. 5. Research delimitations 21
[Link] two: Literature Review 22
11.1. Definition of AI 22
11.2. The balanced scorecard perspectives 24
11.3. Impact of AI on Employees Learning
and Growth 27
11.4. Impact of AI on Internal Process
Improvement 29
11.5. Impact of AI on Customer Satisfaction 33
11.6. Impact of AI on Profitability 35
11.7. Examples of AI applications and 37
software in pharmacy internal process
11.8. Challenges in using AI in pharmacy 39
practice

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 12. Chapter three: Research Methodology 41

[Link] four: Findings and Data 43

Analysis
13.1. Questionnaire Results 43
13.2. Interpretation and Findings 62
13.3. Data Reliability 64
14. Chapter five: Conclusions and Future 65
Recommendations
15. Appendix 67
16. References 71

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7. Table of figures

Figure Description
Number
1 Represents AI definition
2 Represents AI tools
3 Represents balanced scorecard multi-dimensions
4 Represents the Likert five-point scale
5 Represents a bar chart showing the results of the questionnaire’s
first question asking about the affiliation of respondents
6 Represents a pareto chart showing the results of the questionnaire’s
second question "How are you familiar with artificial intelligence
(AI) concept?
7 Represents a pareto chart showing the results of the questionnaire’s
third question "Which AI applications do you use or interact with
on a regular basis?
8 Represents a pareto chart showing the results of the questionnaire’s
fourth question “Have you previously used any artificial
intelligence software or application in pharmacy related issues?
9 Represents a pareto chart showing the results of the questionnaire’s
fifth question “If yes, Mention the name of AI software or
application used....
10 Represents a pareto chart showing the results of the questionnaire’s
sixth question “Which aspect of pharmacy management would be
mostly affected by the implementation of AI in your opinion?
11 Represents a pareto chart showing the results of the questionnaire’s
seventh question “How important do you think it is for pharmacists
to continuously update their skills to adapt to emerging AI
technologies in the field?
12 Represents a pareto chart showing the results of the questionnaire’s
eighth question “Do you believe AI will significantly change the
nature of work in the future?

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 13 Represents a pareto chart showing the results of the questionnaire’s
nineth question “Do you think AI can enhance innovation and
creativity in the workplace?
14 Represents a pareto chart showing the results of the questionnaire’s
10th question “On a scale of 1 to 5, Do you believe that AI systems
can improve inventory management, reduce overstock and
stockouts through better demand forecasting?
15 Represents a pareto chart showing the results of the questionnaire’s
11th question “On a scale of 1 to 5, Do you think automated
dispensing AI systems can decrease human errors, enhance
efficiency and speed up medication dispensing process?
16 Represents a pareto chart showing the results of the questionnaire’s
12th question “Do you think it is beneficial or safe to use AI based
chatbots to answer patients frequently asked questions, provide
product information, availability, and allow clients to order them?
17 Represents a pareto chart showing the results of the questionnaire’s
13th question “On a scale of 1 to 5, Do you believe AI can enhance
pharmacist learning and growth?
18 Represents a pareto chart showing the results of the questionnaire’s
14th question “On a scale of 1 to 5, Do you think AI powered
pharmacies can minimize costs, increase revenues leading to higher
long-term profitability?
19 Represents a pareto chart showing the results of the questionnaire’s
15th question “Do you believe that AI has the potential to replace
certain roles currently held by pharmacists?
20 Represents a pareto chart showing the results of the questionnaire’s
16th question “Do you think you will encounter any challenges or
difficulties while integrating AI into your pharmacy management
system?
21 Represents a pareto chart showing the results of the questionnaire’s
17th question “What ethical considerations do you think should be
addressed in Ai development?
22 Represents a pareto chart showing the results of the questionnaire’s
18th question “Do you think AI should be regulated by
governments?

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 23 Represents an essay question showing the results of the
questionnaire’s nineteenth question “Are there any concerns or
risks associated with the use of AI in pharmacy management and
supply chain that you think should be addressed?

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8. Table of tables

Figure Description
Number

1 Table of contents

2 Table of tables

3 Represents AI applications & software have been used in

pharmacy internal process

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9. Abbreviations:

AI: Artificial Intelligence

APA: American Psychological Association
A/R: Account Receivables
BMJ: British Medical Journal
BSC: Balanced Scorecard
CDS: Controlled Dangerous Substances
CSR: Corporate Social Responsibility
EMR: Electronic Medical Records
EPS: Egyptian Pharmacists Syndicate
GPT: Generative Pre-training Transformer
HR: Human Resources
NHS: National Health Services
PDMP: Prescription Drug Monitoring Program
PMS: Performance Management System
PwC: PricewaterhouseCoopers
R&D: Research and Development
UCSF: University of California, San Francisco
UHI: Universal Health Insurance
UK: United Kingdom
USA: United Staes of America

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10. Chapter one

10.1. Introduction: The Pharmacy Field in Egypt

The community pharmacy, also referred to as a retail pharmacy, is the most
familiar type of pharmacy, typically recognized as the local pharmacist or
chemist shop. Community pharmacists operate within these stores, offering
the community access to necessary medications and providing guidance to
ensure their safe and effective use. The community pharmacy plays a
crucial role in global healthcare, where the ultimate consumer lacks direct
decision-making power in drug purchases. Instead, physicians typically
hold significant influence over which medicines are chosen. This dynamic
varies notably between developed and developing countries. In nations
with large, impoverished populations, pharmacists often assume a pivotal
role due to their expertise, influencing and even making decisions for
millions of consumers.(Taher et al., 2012) As of August 2023, Egypt's
population had grown to nearly 105 million, with those under 15 years old
comprising 34.1% and those over 65 years old making up 4.1%. Urban
residents accounted for 43.0% of the population by 2020. (Youssef &
Amin, 2023) Egypt's healthcare system has faced increasing challenges
over recent decades, transitioning from a pluralistic model to a Universal
Health Insurance (UHI) system aimed at expanding coverage and
separating financing from service provision. In 2018, Egypt initiated a
mandatory UHI law, initially rolled out in select governorates and slated
for nationwide implementation by 2032. This system, centered around
family units rather than individual coverage, aims to address gaps in
healthcare access, particularly among informal workers. Despite its
potential benefits for healthcare quality and accessibility, concerns persist
about the feasibility and financial sustainability of the UHI plan. (Youssef
& Amin, 2023) Concerning the pharmaceutical market, The Egyptian
government regulates the price pharmaceutical companies and pharmacies
can charge for drugs, thus making it difficult for the industry to
grow.(Taher et al., 2012) Increased competition in this market encouraged
most community pharmacies to introduce a home delivery service of
medications and other self-care interventions. (Youssef & Amin, 2023)
Competition, however, has also increased poor practices in some
pharmacies such as the alarming rates of injudicious dispensing of
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antibiotics, which may be up to 65% in upper respiratory tract infections.
The emergence and spread of pharmacy chains especially in large cities
such as Cairo and Alexandria have created a disadvantage for many
independent community pharmacies which continue to struggle in
competing with larger corporations, which have the capacity to offer larger
discounts on medication prices in violation of regulations. Egypt has
experienced a significant increase in the number of pharmacists and
community pharmacies over the past two decades, with 95,000 community
pharmacies and 313,000 registered pharmacists in 2023, up from 175,000
in 2013 and 71,000 in 2003. (Youssef & Amin, 2023) Despite this growth,
pharmacy education in Egypt has traditionally focused more on
pharmaceutical sciences and less on clinical and social sciences relevant to
self-care interventions. (Youssef & Amin, 2023) So, we can conclude that
the pharmaceutical market is growing overtime, but some challenges are
arising as restricted profits due to forced price of most products, pharmacist
education and training, etc. So, will the use of artificial intelligence (AI)
technologies help to solve those challenges, can the AI technologies
improve the pharmacy internal processes and performance which in turn
will increase the profits and solve the mentioned challenges?

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10.2. Problem Statement
When discussing the problem of Pharmacy performance from different
perspectives, we should mention the balanced scorecard tool. The Balanced
Scorecard serves as a strategic management tool that organizations utilize
to monitor and evaluate their performance from various dimensions. Let's
break down each dimension briefly. Employees Training and Development
represents the first dimension. Employees are the backbone of any
pharmacy. Insufficient training can lead to errors, decreased efficiency, and
low morale. For example, inadequate training in handling prescription
orders can result in mistakes, affecting customer trust and satisfaction.
Second, Profitability is crucial for the sustainability of a pharmacy. Factors
like inventory management, pricing strategies, and operational efficiency
directly impact profits. For instance, ineffective inventory management can
lead to overstocking or stockouts, affecting profitability. Third, Customer
satisfaction is the key to build a loyal customer base. Poor service, long
wait times, or medication errors can significantly impact customer
satisfaction. For example, delays in prescription filling due to inefficient
processes can lead to customer dissatisfaction and loss of business. Lastly,
streamlining internal processes is critical for operational excellence.
Identifying bottlenecks and inefficiencies can lead to cost savings and
improved overall performance. For instance, implementing a digital
prescription management system can enhance workflow efficiency and
reduce errors in prescription processing. Now, we will explore the
challenges within each dimension to investigate how these issues manifest
in pharmacies. By addressing these key areas, pharmacies can enhance
their performance and deliver better services to customers.

Employee training and development plays a crucial role in shaping the

performance of a pharmacy.

• Impact on Pharmacy Performance includes: (Norton, 2017)

1. Improved Quality of Service: Well-trained employees are better

equipped to handle customer queries, dispense medications
accurately, and provide excellent service, leading to increased
customer satisfaction.

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 2. Enhanced Efficiency: Training ensures that employees are proficient
in their roles, leading to faster prescription filling, reduced errors,
and streamlined operations, ultimately boosting efficiency.
3. Increased Employee Morale: Investing in employee development
shows employees that their growth is valued, leading to higher job
satisfaction, lower turnover rates, and a motivated workforce.
4. Adaptation to Changes: Continuous training helps employees stay
updated on new medications, regulations, and technologies,
enabling the pharmacy to adapt to industry changes effectively.

• Challenges in Employee Training and Development: (Norton, 2017)

1. Cost: Training programs can be expensive, especially for small

pharmacies with limited budgets, making it challenging to provide
comprehensive training opportunities to all employees.
2. Time Constraints: Balancing training with daily operations can be
difficult, as pharmacies need to ensure minimal disruption to
customer service while facilitating employee development.
3. Staff Turnover: High turnover rates can compromise the
effectiveness of training efforts, as new employees may require
frequent training, leading to a continuous cycle of onboarding and
development.
4. Training Relevance: Ensuring that training programs align with the
pharmacy's specific needs and challenges can be a challenge, as
generic training may not address the unique requirements of the
pharmacy.

By addressing these challenges through strategic planning, effective

resource allocation, and tailored training programs, pharmacies can
overcome obstacles and harness the full potential of employee training and
development to enhance overall performance.

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Customer satisfaction is a critical factor that significantly impacts a
pharmacy's overall performance.

• Impact on Pharmacy Performance includes: (Norton, 2017)

1. Customer Retention: Satisfied customers are more likely to return to

the pharmacy for their medication needs, leading to increased
loyalty and retention.
2. Word-of-Mouth Marketing: Happy customers are likely to
recommend the pharmacy to others, contributing to positive word-
of-mouth marketing and attracting new customers.
3. Brand Reputation: High customer satisfaction builds a positive
reputation for the pharmacy, enhancing its credibility and
trustworthiness in the community.
4. Revenue Growth: Satisfied customers are more inclined to purchase
additional products or services, leading to increased sales and
revenue for the pharmacy.

• Challenges in Customer Satisfaction: (Norton, 2017)

1. Service Speed: Long wait times at the pharmacy counter can

frustrate customers, impacting satisfaction levels. Balancing speed
with accuracy is crucial but can be challenging during peak hours.
2. Communication: Effective communication with customers,
especially when explaining medication instructions or addressing
queries, can be challenging if staff members are not adequately
trained in customer service skills.
3. Medication Errors: Errors in prescription filling or medication
dispensing can severely impact customer trust and satisfaction.
Ensuring accuracy in all processes is crucial but can be challenging
due to human error or system failures.
4. Handling Complaints: Addressing customer complaints and
resolving issues promptly is essential for maintaining satisfaction
levels. However, handling complaints effectively can be challenging
without a structured feedback mechanism or empowered staff.

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By focusing on improving service speed, enhancing communication skills,
reducing medication errors, and implementing effective complaint
resolution processes, pharmacies can overcome challenges and elevate
customer satisfaction levels, ultimately boosting overall performance and
profitability.

Internal process improvement is vital for enhancing pharmacy

performance.

Internal process includes inventory management, A/R management,

workflow management, warehouse management, medication therapy
management, analytics and reporting and financial management

• Impact on Pharmacy Performance includes: (Norton, 2017)

1. Enhanced Efficiency: Streamlining internal processes such as

prescription filling, inventory management, and customer service
workflows can lead to increased efficiency, reduced wait times, and
improved overall productivity.
2. Cost Reduction: Optimizing processes can help cut down on
wastage, minimize errors, and improve resource utilization,
ultimately leading to cost savings for the pharmacy.
3. Improved Quality: Implementing standardized processes and
protocols can enhance the quality and accuracy of services provided,
leading to better patient outcomes and increased customer
satisfaction.
4. Regulatory Compliance: Ensuring that internal processes align with
regulatory requirements and industry standards can help pharmacies
avoid penalties, audits, and legal issues, safeguarding their
reputation and operations.

• Challenges in Internal Process Improvement: (Norton, 2017)

1. Resistance to Change: Convincing staff members to adopt new

processes and technologies can be challenging, especially if they are
accustomed to existing methods or face uncertainty about the
benefits of change.

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 2. Resource Constraints: Implementing process improvements may
require investments in training, technology upgrades, or
restructuring, which can be challenging for pharmacies with limited
budgets or resources.
3. Interdepartmental Coordination: Aligning processes across different
departments within the pharmacy, such as the dispensary, front
counter, and inventory management, can be challenging, requiring
effective communication and collaboration.
4. Measurement and Monitoring: Tracking the impact of process
improvements and ensuring sustained adherence to new protocols
can be challenging without robust monitoring mechanisms and
performance metrics in place.

By addressing these challenges through effective change management

strategies, stakeholder engagement, resource allocation, and continuous
monitoring and evaluation, pharmacies can successfully implement
internal process improvements to drive performance enhancements and
achieve long-term success.

Profitability is a crucial aspect affecting pharmacy performance.

• Impact on Pharmacy Performance includes: (Norton, 2017)

1. Sustainability: Generating profits is essential for the long-term

sustainability of a pharmacy business, allowing for investment in
staff training, technology upgrades, and other improvements.
2. Expansion Opportunities: Healthy profits provide the financial
resources needed to expand services, open new locations, or
diversify offerings, contributing to business growth and market
presence.
3. Competitive Advantage: A profitable pharmacy can invest in
marketing, customer service enhancements, and innovative
solutions, gaining a competitive edge in the market and attracting
more customers.
4. Employee Motivation: Profit-sharing schemes or bonuses tied to
profitability can motivate staff members to perform better, enhance
productivity, and contribute positively to overall pharmacy
performance.
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 • Challenges in Profitability: (Norton, 2017)

1. Reimbursement Changes: Fluctuations in reimbursement rates from

insurance companies or government programs can impact
profitability, requiring pharmacies to adapt by optimizing
operational efficiency and cost controls.
2. Price Competition: Price pressures from competitors or online
pharmacies can reduce profit margins, necessitating strategic pricing
strategies, value-added services, or product differentiation to
maintain profitability.
3. Inventory Management: Poor inventory control, expiration of
medications, or overstocking can lead to financial losses, affecting
profitability. Implementing effective inventory management
practices is vital but can be challenging without proper systems in
place.
4. Regulatory Compliance Costs: Adhering to regulatory
requirements, such as data security standards or patient privacy laws,
can incur additional costs for pharmacies, impacting profitability.
Ensuring compliance while managing costs can be a challenging
balancing act.

By addressing challenges through proactive financial planning, cost

management, pricing strategies, operational efficiencies, and
diversification of revenue streams, pharmacies can optimize profitability,
strengthen performance, and ensure long-term success in a competitive
market landscape.

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10.3. Research Objectives

Studying the impact of using AI on pharmacy management performance

from numerous balanced scorecard dimensions as profitability, customer
satisfaction, internal process improvement & employees learning &
growth.

10.4. Research Limitations

• Reliance solely on a questionnaire for data collection may limit the
depth of understanding that could be gained from more qualitative
methods such as interviews or focus groups as it was not applicable for
us.
• The data collected through questionnaires relies on self-reported
responses, which may be influenced by respondents' subjective
interpretations and perceptions, so may introduce some inaccuracies or
biases.
• We were not able to include other potential sources of data as case
studies due to the novelty of the idea in the Egyptian community.
Almost, AI-powered community pharmacies are not found in the area
till present.
• Constraints such as time, budget, and access to participants may have
limited the scope or scale of the research, influencing the breadth of
topics covered or the ability to reach a larger sample size.
• The study assumes availability and accessibility of AI technologies in
pharmacy management, which may vary depending on factors such as
infrastructure, funding, and technological readiness in different
settings.

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10.5. Research Delimitations

The study focused specifically on the impact of AI on pharmacy

management performance using the balanced scorecard dimensions of
profitability, customer satisfaction, internal process improvement, and
employee training and growth and discussed the challenges and potential
risks for AI application in pharmacies without extending the scope to other
potential impacts or dimensions of AI's influence on pharmacy
management such as regulatory compliance, adaptability, risk
management, environmental and community impact.

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11. Chapter two: Literature Review

Artificial Intelligence (AI) has revolutionized numerous industries, and the

field of pharmacy management is no exception. We aim to explore the
impact of AI on pharmacy management systems focusing on key areas
such as inventory management, patient care, medication dispensing, and
overall operational efficiency to study their impact on system performance
from point of view of profit, customer satisfaction, internal process
improvement, employees learning, and growth based on balanced
scorecard tool.

11.1. Definition of AI

Figure (1) represents AI definition (Burns et al., 2023)

Big data and machine learning are transforming various aspects of modern
life, including entertainment, commerce, and healthcare, by enabling
detailed personal profiling and predicting trends. Platforms like Netflix,
Amazon, and Google leverage this data for personalized recommendations
and insights. There is growing opthe samesm that AI can significantly
enhance healthcare, with evidence showing that AI algorithms often match
or surpass human performance in tasks such as analyzing medical images
and correlating symptoms with disease prognosis.(Memarzadeh, 2020)
Artificial intelligence and machine learning models are computational and
mathematical algorithmic models which execute trained data and

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humanoid experiences input to produce a decision an expert would make
when provided with same information. In the 1950s, John McCarthy thinks
up the term “artificial intelligence,” and Marvin Minsky was a well-known
scientist in the field. Artificial intelligence (AI) has been changing
businesses as proven by Airbnb, Ola, Uber, Flip cart, e-Bay, Amazon,
Mantra, etc. and other enterprises that have incorporated its use to
instrument state-of-the-art business models. (Mishra & Tripathi, 2021) AI
is the science and engineering of making intelligent machines, especially
intelligent computer programs. AI is an innovative tool that revolutionizes
management and organizational practices by advancing computer science
to enable computers to act smartly and perform intelligent tasks, including
recognition, reasoning, and learning, on behalf of humans. AI has changed
the pattern of work and decision-making abilities for many organizations
with its smart technological approach such as genetic algorithms, neural
networks, data mining, text mining, sentiment analysis and interactive
voice recognition applications.(Rana et al., 2021) AI refers to manifold
tools and technologies that can be combined in diverse ways to sense,
cognize and perform with the ability to learn from experience and adapt
over time.(Akerkar, 2019) Computers were first introduced to pharmacies
around the 1980s, and since then, they have been employed extensively for
data collection, retail management, clinical research, drug storage,
education, and clinical practice. The advent of artificial intelligence
promises further transformative changes in the pharmacy sector's future
evolution.(Raza et al., 2022)

Figure (2) represents AI tools (Akerkar, 2019)

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11.2. Balanced scorecard tool in measuring pharmacy
performance
The Balanced Scorecard (BSC) is a strategic planning and management
tool used by organizations to track and measure their performance across
multiple perspectives. This tool enables organizations to translate their
vision and strategy into a set of actionable objectives and performance
indicators. BSC was created in the 1990s by professors Robert Kaplan and
David Norton as a response to the limitations of traditional approaches to
performance measurement, which focused almost exclusively on financial
indicators. (Norton, 2017) The term “balanced scorecard” reflects its
approach of integrating both strategic and traditional financial measures to
offer a more holistic perspective on performance. (The Four Perspectives
of the Balanced Scorecard - Balanced Scorecard Institute, n.d.) Unlike the
conventional focus on short-term financial results, the balanced scorecard
incorporates non-financial metrics such as customer satisfaction, product
innovation, employee engagement, and process efficiency to emphasize
long-term success.(James Milsom, 2022) The BSC system combines
qualitative and quantitative performance indicators to track progress
towards strategic objectives aligned with the organization’s mission,
vision, and strategy. Kaplan and Norton, who developed the concept,
explain that while financial measures are important, they often reflect past
performance and are insufficient for guiding future strategies, particularly
in the information age where investments in customers, suppliers,
employees, and technology are crucial for creating future value.(James
Milsom, 2022) More than half of major companies in the US, Europe, and
Asia now utilize the BSC, including prominent firms like Coca-Cola,
Pepsi, Microsoft, Google, and Amazon.(James Milsom, 2022) Despite its
advantages, implementing a balanced scorecard can present challenges
such as defining performance indicators, ensuring data accuracy, and
avoiding an overemphasis on lagging indicators.(James Milsom, 2022) To
effectively deploy the BSC and derive valuable insights, it is essential to
set clear goals and objectives, utilize technology solutions, regularly
monitor key performance indicators (KPIs), gather customer feedback, and
incorporate financial metrics as needed. Adhering to these best practices
enables organizations to strategically plan, evaluate performance against
targets, and drive continuous improvement. (James Milsom, 2022) The
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balanced scorecard encompasses four main elements: Customer Value,
Internal Processes, Organizational Learning Goals, and Financial Metrics.

In addition to the traditional perspectives of the balanced scorecard, a new

dimension has emerged to reflect modern business environments and
strategic needs. As reported by Asiaei & Bontis (2019), the performance
management system (PMS) is conceptualized as sustainability BSC
through adding a new dimension, social and environmental perspective
into the four dimensions of traditional Kaplan and Norton's BSC model.
(Asiaei & Bontis, 2019) Corporate social responsibility (CSR) is
increasingly crucial in today's competitive business world, integral to
business strategy and operations. Safarzad (2016) defines CSR as a concept
where businesses prioritize the community's interests and take
responsibility for the impact of their activities on various stakeholders,
including customers, suppliers, employees, shareholders, communities,
and the environment. (Safarzad et al., 2016) CSR encompasses economic
practices affecting communities and stakeholders, social impacts on
societal systems, and environmental effects on natural ecosystems. (Asiaei
& Bontis, 2019) Corporate social responsibility (CSR) offers both external
and internal benefits. Externally, CSR enhances a company's reputation,
fostering stronger connections with external stakeholders, attracting skilled
employees and boosting loyalty among current employees. Internally, CSR
helps organizations acquire new capabilities and cultural elements,
enriching human and structural capital. Overall, CSR contributes to
developing and leveraging crucial intangible assets for organizations.
(Asiaei & Bontis, 2019)

In our study, we will explore the impact of AI technologies on the four

dimensions due to their high association with each other, Starting from the
role of AI in training the employees for the job requirements and
operations, this will result in higher efficiency in managing the internal
processes which will lead to higher customer satisfaction and so higher
profits. This will enable a pharmacy to gain a more comprehensive
understanding of its overall performance and make strategic decisions to
improve performance and achieve its goals. In the context of a pharmacy,
a balanced scorecard could include the following four perspectives:

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 Figure (3) represents balanced scorecard multi-dimensions (Balanced
Scorecard Approach (BSC)_ Definition, Limits and Benefits, 2021)

1. Learning and Growth Perspective: This perspective focuses on the

development of staff and resources to support long-term growth and
innovation. A pharmacy could track metrics such as employee
satisfaction, training and development investments, and
implementation of new technology and tools. (Chavan, 2009)

2. Internal Process Perspective: This perspective focuses on the

internal processes that drive performance, such as inventory
management, prescription processing times, and medication safety
protocols. A pharmacy could track metrics such as inventory
turnover, prescription processing times, and medication error rates.
(Chavan, 2009)

3. Customer Perspective: This perspective focuses on customer

satisfaction and loyalty. This might include metrics such as customer
satisfaction ratings, number of repeat customers, and percentage of
prescriptions filled on time. (Chavan, 2009)

4. Financial Perspective: This perspective focuses on financial

outcomes, such as revenue growth, profitability, and cost control. A
pharmacy could track financial metrics such as total revenue, gross
margin, net profit margin, and cost of goods sold. (Chavan, 2009)
(Assess and Manage Your Pharmacy Profitability, 2021)
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11.3. Impact of AI on employees learning and growth

Artificial intelligence (AI) has emerged as a transformative force,

revolutionizing the way training programs are designed, delivered, and
optimized. This part explores the profound impact of AI in training and
development, providing insights into how professionals can leverage this
technology to create more effective and personalized learning experiences.
(Sha Ri Na, 2024)

A. Personalized Learning Paths

The application of artificial intelligence technology provides intelligent
auxiliary tools for workplace training, which can provide personalized
learning resources and guidance according to the needs and background of
employees. First, based on personalized recommendation algorithms, AI
can recommend training courses and learning materials that meet the needs
of employees based on their learning history, career development plans and
other information Second, AI can simulate real work scenes, allowing
employees to train and practice in a virtual environment to enhance the
learning effect. (Sha Ri Na, 2024)

B. Assessment and optimization of workplace training effects

Artificial intelligence technology can also be used for the evaluation and
optimization of workplace training effects. Through learner behavior
analysis and data mining technology, the learning outcomes and effects of
workplace training can be quantitatively assessed. (Sha Ri Na, 2024)

C. Intelligent Content Curation

AI enhances content curation by enabling training and development
professionals to efficiently sift through extensive information and identify
relevant, high-quality resources. Utilizing natural language processing and
machine learning, AI systems align content with specific learning
objectives, saving time and ensuring access to valuable, up-to-date
information for learners. (Sha Ri Na, 2024)

27
D. Predictive Analytics for Skill Gaps
Training and development professionals can use predictive analytics to
proactively identify and address skill gaps within an organization by
leveraging AI algorithms to analyze employee performance data, spot
trends, and forecast potential skill shortages. This allows professionals to
design targeted training programs that address specific skill gaps, ensuring
that employees are equipped with the skills needed for current and future
challenges. (Sha Ri Na, 2024)

E. Application of Artificial Intelligence in Career Development

Planning
As an emerging technology, artificial intelligence is playing an
increasingly important role in the field of human resource management.
The application of AI in career development planning has shown great
potential. Firstly, AI can provide personalized career development advice
to employees. Traditional career development planning is often based on
the experience and judgement of HR departments and managers, which
often fails to consider the individual differences and future development
potential of each employee. Secondly, AI can also help employees
discover new opportunities and challenges during their career
development. By analyzing a large amount of career development data and
trends, AI can help employees understand the current and future job market
and predict career needs and trends.(Sha Ri Na, 2024)

Conclusion
Artificial intelligence in workplace training has brought innovation to
traditional training methods. Through intelligent assistive tools and data
analysis technology, AI can provide employees with personalized learning
resources and guidance and evaluate and optimize training effects.

28
11.4. Impact of AI on internal process improvement
Computers were first introduced to pharmacies around the 1980s, and since
then, they have been employed extensively for data collection, retail
management, clinical research, drug storage, education, and clinical
practice.(Raza et al., 2022) The advent of artificial intelligence promises
further transformative changes in the pharmacy sector's future evolution.
As in 2024, technology is revolutionizing pharmacy operations,
particularly with the integration of artificial intelligence (AI). AI enables
pharmacies to employ intelligent systems for prescription fulfillment and
inventory management, leading to increased efficiency, reduced errors, and
more pharmacist availability for patient care. AI further supports
pharmacists in offering personalized advice by analyzing patient data to
tailor treatments. Additionally, this technological shift is generating
numerous new job opportunities within the pharmacy sector. For example,
Quad Recruitment USA leads in Pharmacy Staffing, ensuring pharmacies
hire skilled professionals proficient in utilizing cutting-edge
technologies.(Onissiphorou, 2024)

A. AI and Inventory Management

AI offers significant benefits in inventory management, addressing
common issues like overstocking, understocking, and expiration tracking.
Imagine as a retail pharmacist, predicting patient needs, stocking
accordingly, and using personalized software to remind patients of their
medication requirements via email.(Raza et al., 2022) AI-driven data
analytics, such as predictive analytics demonstrated in studies like those by
Smith et al. (2019), enable algorithms to forecast medication demand based
on historical and seasonal trends. This approach supports informed stock
procurement decisions, reduces waste, and enhances overall inventory
efficiency. (Smith, J., 2019) Moreover, federal regulations mandate the use
of perpetual systems (AI systems) for Schedule II controlled substances,
ensuring real-time inventory updates as prescriptions are filled and
dispensed. Additionally, research by Jones and Patel (2020) underscores
how AI automates reordering by continuously monitoring stock levels and
initiating orders when supplies are low, thereby optimizing inventory
management processes. (Jones, A., & Patel, 2020)

29
B. AI and Medication Dispensing

Pharmacists spend most of their working hours dispensing drugs. This task
requires lots of concentration, a great deal of verification, drug interaction
checking, not to mention making sense of the doctor’s handwriting. Is it
necessary to dispense drugs manually? Not at all. efficient computer-to-
computer communication allows prescriptions to be managed by software,
freeing up pharmacists to spend more time interacting with patients. AI
technologies have streamlined the medication dispensing process, reducing
errors and enhancing efficiency. Automated “robotic” dispensing systems
powered by AI are increasingly being adopted in pharmacies to ensure
accurate and timely medication delivery. These are machines that
automatically count and dispense pills for a pharmacist. Some complex
systems even print the label and apply it to the bottle. Studies, such as those
by [Miller and Thompson (2018)] indicate that AI can significantly reduce
dispensing errors by cross-referencing prescriptions with patient records
and flagging potential issues. (Miller, T., & Thompson, 2018) Also research
by [Wilson et al. (2020)] highlights the role of AI-powered robotic systems
in automating the dispensing process, which not only speeds up service but
also minimizes human error.(Wilson, R., 2020) For example, The
University of California San Francisco (UCSF) Medical Center employs
robotic technology to enhance patient safety by preparing and tracking
medications. The robot has successfully dispensed 350,000 medication
doses error-free, surpassing human capabilities in accuracy and capacity.
It handles the preparation of both oral and injectable medications,
including toxic chemotherapy drugs, allowing pharmacists and nurses at
UCSF to concentrate on direct patient care and collaborate more closely
with physicians. (New UCSF Robotic Pharmacy Aims to Improve Patient
Safety | UC San Francisco, n.d.)

C. AI and Patient Care

AI enhances patient care by providing personalized medication
management and improving adherence to treatment plans. As for
personalized medication plans according to [Brown et al. (2021)], AI
algorithms and machine learning can analyze patient history, medical
records, laboratory results, and medication profiles to recommend

30
personalized medication regimens, reducing the risk of adverse drug
reaction and drug-drug interactions.(Brown, L., 2021) Adherence
Monitoring Research by [Garcia and Lee (2022)] shows that AI can track
patient adherence to prescribed medications through mobile apps and
wearable devices, sending reminders and alerts to ensure compliance. AI
can enhance patient counseling by supporting pharmacists directly or
indirectly, improving the quality of the advice patients receive. Apart from
spending more time with a customer in person, pharmacists can
communicate with them online on a patient portal. And by setting up a
connection to a hospital’s EHR, pharmacists can access a patient’s
medication history to make better recommendations. Additionally,
specialized medication adherence tools assist patients in managing their
medications by simplifying prescription refills and providing timely
notifications. (Garcia, M., & Lee, 2022)

D. AI and Operational Efficiency

AI contributes to overall operational efficiency in pharmacies by
optimizing workflow and resource allocation. This can lead to cost savings
and improved service delivery. According to [Davis and Clark (2019)], AI
can analyze workflow patterns and identify bottlenecks, suggesting
improvements that enhance productivity. (Davis, K., & Clark, 2019) Also
research demonstrates how AI can optimize resource allocation, such as
staffing levels and task assignments, to ensure that pharmacies operate
smoothly and efficiently.(Joloudari et al., 2022)

E. AI and Preventing Medicine Fraud

Pharmacies are crucial in managing the distribution of controlled
dangerous substances (CDSs) by recording prescription details in the
Prescription Drug Monitoring Program database and verifying this
information when dispensing medications. A pharmacy management
system integrated with the PDMP portal allows you to cut down logging
time and effort to just a few clicks as information is automatically added to
the patient’s history. (Pharmacy Management System: Benefits, Features,
Providers, 2021)

31
Conclusions
The integration of AI into pharmacy management systems has shown
promising results in improving inventory management, patient care,
medication dispensing, and overall operational efficiency. As AI
technology continues to evolve, its impact on pharmacy management is
expected to grow, offering even more innovative solutions to enhance the
quality and efficiency of pharmaceutical services. (Raza et al., 2022)

32
11.5. Impact of AI on customer satisfaction

Modern conversational tools, such as chatbots, are increasingly used in the

pharmaceutical field, taking on roles that were once handled by experts and
consultants in both production and pharmacy settings. Their
implementation helps pharmacies cut time and effort in different areas.
(Using Chatbots in Pharma_ What You Need to Know - Springs, 2024)

✓ Best Pharma Chatbot Examples (Using Chatbots in Pharma_ What

You Need to Know - Springs, 2024):

1. IONI (Springs)
2. Florence (Florence)
3. Kebot (Roche Pharma)

A. Answering Frequently Asked Questions

Pharmacies use AI-based chatbots to provide information on products,

availability, and allow clients to place orders directly through the interface.
Pharmaceutical companies also deploy these tools to address inquiries
about items, dosages, and prices. (Using Chatbots in Pharma_ What You
Need to Know - Springs, 2024)

B. Enhanced Customer Coverage

Implementing chatbots in customer relationship management enables

pharmacies and companies to serve a wider client base. These chatbots can
be customized with speech-to-text functionality and multilingual support,
enhancing accessibility for diverse demographics and individuals with
disabilities. (Using Chatbots in Pharma_ What You Need to Know -
Springs, 2024)

C. Continuous Support

GPT-powered chatbots in the pharmaceutical sector offer medical advice

beyond regular business hours, which is particularly useful in emergencies.
They provide immediate guidance on handling emergencies or direct users
to emergency contacts. (Using Chatbots in Pharma_ What You Need to
Know - Springs, 2024)
33
D. Advanced Insights and Analytics

Chatbots collect extensive data during patient interactions, offering

valuable insights to pharmaceutical companies on medication effectiveness
and areas for improvement. They also help identify potential opportunities
and risks in pharmacy operations. (Using Chatbots in Pharma_ What You
Need to Know - Springs, 2024)

E. Personalized Recommendations

Pharmaceutical chatbots provide tailored advice and recommendations

based on individual medication histories and outcomes. They suggest
suitable treatments or refer users to pharmaceutical experts, enhancing
efficiency for both pharmaceutical firms and retailers. (Using Chatbots in
Pharma_ What You Need to Know - Springs, 2024)

F. Prescription Refills

Chatbots enable patients to request prescription refills without visiting

physical stores, saving time and effort, and reducing the burden on
pharmacy staff handling these requests. (Using Chatbots in Pharma_ What
You Need to Know - Springs, 2024)

Conclusion
After applying artificial intelligence programs in some pharmacies, the
survey concluded a noticeable enhancement in customer satisfaction with
the services provided to them, in addition to saving effort and time.

34
11.6. Impact of AI on profitability

The impact of using artificial intelligence (AI) on pharmacy profitability

has been the subject of numerous studies and reports. These studies
indicate that AI applications can significantly improve operational
efficiency, reduce costs, and increase revenues in the pharmacy sector.
Here are some key points supported by research:

A. Improved Inventory Management

• Research: A study published in the "Journal of Pharmaceutical

Innovation" found that AI in inventory management can reduce
storage costs by 20-30% through better demand forecasting and
minimizing overstock and stockouts. (Albayrak Ünal et al., 2023)
• Impact: Lower costs associated with storing unused medications
and reduced lost sales due to stock shortages.

B. Enhanced Operational Efficiency

• Research: The "Intelligent Pharmacy Journal" published a study

showing that pharmacies using automation and AI for routine tasks
like medication dispensing and processing saw an increase in
productivity. (Khan et al., 2023)
• Impact: Reduced labor costs and fewer human errors, leading to
improved profitability.

C. Better Customer Service and Marketing

• Research: A report from McKinsey & Company highlighted that

AI-driven data analytics and targeted marketing campaigns can
increase marketing effectiveness by 30-40%, leading to higher sales.
(Deveau et al., 2023)
• Impact: Higher return on marketing investments and increased
customer loyalty, boosting revenue.

D. Drug Development and Clinical Trials

• Research: A study in "Nature Biotechnology" indicated that AI can

cut drug discovery costs by up to 50% by speeding up the research
35
 and development process and improving clinical trial outcomes.
(Smalley, 2017)
• Impact: Lower R&D costs and faster time-to-market for new drugs,
increasing revenue.

E. Health Data Analysis and Disease Prediction

• Research: According to the "Journal of Medical Internet Research,"

AI in health data analysis can improve disease outbreak prediction
and public health management efficiency by 20-30%. (Asan et al.,
2023)
• Impact: Enhanced strategic planning and increased demand for
health products, contributing to higher profitability.

F. Reduced Medical Errors and Improved Compliance

• Research: A study in "Journal of Digital Health" found that AI

applications can reduce medical errors by up to 50% and improve
compliance with health regulations. (Kue et al., 2024)
• Impact: Lower legal costs and penalties associated with errors,
leading to increased profitability.

G. Lower Operational Costs

• Research: A report from PwC indicated that AI-powered predictive

maintenance can reduce unexpected maintenance costs by 30-40%.
(The Significance of Machine Learning in AI Predictive
Maintenance Solutions, 2024)
• Impact: Lower operational costs and overall increased efficiency,
enhancing profitability.

Conclusion

Research and studies show that using AI in pharmacies can lead to

significant improvements in operational efficiency, cost reduction, and
revenue increase. Adopting the necessary technology and training to
leverage these applications can result in substantial returns on investment,
significantly boosting long-term profitability.

36
11.7. The following table shows the AI applications and
software that can help with different processes held in
pharmacies resulting in improved performance.

Table (3) represents AI applications & software have been used in

pharmacy internal process

Name of application Specification (use)

Pharma Chatbots as Modern conversational tools (Chatbots) have

(IONI, Florence) (Using filled many roles that were previously done by
Chatbots in Pharma_ pharmacists as answering frequently asked
What You Need to Know questions and filling prescriptions.
– Springs, 2024)
A. IONI is a free AI Healthcare Chatbot Builder
that can be customized for your pharma
business, using its Generative AI algorithm to
analyse data and provide requested
information. IONI enhances pharma
operations by streamlining customer support
with quick data analysis for medicine queries
and automating information retrieval, saving
time and resources while improving
efficiency.
B. Florence is a versatile chatbot that simplifies
patient healthcare by reminding users about
medication schedules, tracking health metrics
like mood and weight, and helping find nearby
doctors and pharmacies.

Kebot (Using Chatbots in Roche Pharma’s Kebot enhances sales staff

Pharma_ What You Need training by collecting and analysing post-call
to Know – Springs, 2024) evaluations and notes, which are used to create
tailored training materials and improve future
sales call quality.

37
 Kit Check (Bluesight - A pharmacy automation software that leverages
The Medication AI and machine learning to optimize hospital
IntelligenceTM Company, pharmacy inventory management by efficiently
n.d.) tracking medication usage, expiration dates, and
inventory levels.

Sensyne Health's AI- Uses predictive analytics to analyse historical

powered software data, forecast medication demand, optimize
(Sensyne’s SENSIGHT inventory levels, and minimize wastage in
Platform Brings AI To pharmacy management.
Patient Data Analytics _
The Healthcare
Technology Report, n.d.)

Parata Max (Pharmacy A robotic dispensing system that uses AI

Automation Solutions _ technology to automate medication counting,
Parata, 2024) prescription verification, and dosage accuracy.

Omnicell's XR2 Employs AI and machine learning to improve

Automated Central medication dispensing workflows, reduce errors,
Pharmacy System (XR2 and enhance safety in hospitals and pharmacies.
Automated Central
Pharmacy System _
Omnicell, n.d.)

38
11.8. Challenges in using AI in pharmacy practice

A. Data privacy and security

The increasing use of AI in healthcare raises concerns about data privacy

and security. As health information is particularly sensitive, protecting
patient data is crucial. Some patients worry that their data is being collected
and shared without their consent, leading to lawsuits between healthcare
organizations and AI developers. A key issue is obtaining patient consent,
as large-scale data collection for AI training often occurs without
individual consent. For example, DeepMind Health's app Streams,
acquired by Google in 2018, was criticized for collecting data on 1.6
million patients from the UK's National Health Services (NHS) without
patient consent to train its algorithm.(Chalasani et al., 2023)

B. Bias

The data used to train AI models can perpetuate biases, leading to

inaccurate results. This is particularly concerning for minority groups, as
they may be underrepresented in datasets due to biases in data collection.
Even if the data is accurate and representative, AI systems can still reflect
and amplify existing biases in the healthcare system. For instance, an AI
system trained on healthcare records may learn to recommend lower opioid
doses for African American patients due to systemic bias, despite the fact
that this decision is not based on biological reality. This highlights the need
to address biases in data collection and healthcare practices to ensure AI
systems make fair and equitable decisions.(Chalasani et al., 2023)

C. Ethical concerns

When AI systems are designed to improve patient care, accountability

becomes a crucial issue. However, if these systems fail, it's unclear who
should be held responsible. The problem is particularly complex when it
comes to AI-powered decision-making tools used by pharmacists. On one
hand, it may seem unfair to hold the pharmacist accountable for errors
made by an algorithm they didn't develop or control. On the other hand,
holding the developers responsible may be too distant from the clinical
context where the system is being applied. This highlights the need for a

39
clear framework for assigning accountability in AI-powered healthcare
systems, ensuring that those responsible for the system's development and
use are held accountable for its outcomes.(Chalasani et al., 2023)

D. Social concerns

A significant social concern surrounding AI in healthcare is the fear that it

will replace human healthcare workers, making them redundant. This
perceived threat has led to distrust and resistance to AI-based interventions.
Pharmacists are often concerned that AI-powered systems will automate
many tasks, such as processing prescriptions, tracking inventory, and
providing patient information. This may lead to job losses and a reduction
in the need for human pharmacists. However, it's essential to recognize that
AI is designed to augment and support pharmacists' work, not replace
them.

AI can help pharmacists:

• Process prescriptions more efficiently, freeing up time for more

complex and high-value tasks
• Analyse large amounts of data to provide personalized medication
recommendations and identify potential interactions
• Assist with patient education and counselling, helping to improve
patient outcomes

So, by understanding the limitations and benefits of AI, we can build trust
and promote its adoption as a valuable tool for improving patient care.
(Chalasani et al., 2023)

40
12. Chapter three: Methodology

This chapter describes the methodology utilized in the present study. It

begins with distinctive theoretical background, research design, data
collection and analysis model, conclusions and future recommendations.

Research design

The current study is considered a casual study. It aimed at investigating the

impact of artificial intelligence on performance of pharmacy management
system. The pharmacy management performance was assessed from four
perspectives based on balanced scorecard dimensions including
profitability, customer satisfaction, internal process improvement and
employees training and growth. This study starts with an introduction
about the status of pharmacy field in Egypt. After that, the problem
statement assesses the current pharmacy performance in the pharmacies
and its challenges. Following, the review literature represents AI concept,
balanced scorecard concept and the previously published data about impact
of AI on pharmacy performance four dimensions (profitability, customer
satisfaction, internal process improvement and employees training and
growth). Then, the methodology is shown followed by the questionnaire
results. Finally, the major findings were represented based on the primary
and secondary data collected followed by the conclusions and future
recommendations. The questionnaire details are included in the appendix.
The references were formulated with the help of Mendeley software using
the APA 7th edition style

Data collection

There are 2 types of data: primary data and secondary data.

Primary data is the original data that has been collected. It’s first-hand data
that most of them are generated by authors like surveys, questionnaires,
experiments, personal interviews, real-world data, … etc. In our study, we
have made a questionnaire to be filled in by the community pharmacy
managers. It aims to assess those pharmacists’ awareness of AI concept
and their opinion about AI impact on pharmacy performance dimensions
based on balanced scorecard perspectives. The questionnaire consists of 19
41
questions. The first part collects some data about affiliation, the
pharmacist’s awareness of AI concept in general and AI use in pharmacy
field in particular. Then, the second part asks about their opinions
regarding the impact of AI on the four performance dimensions mentioned
previously. Lastly, the third part presents questions about the risks and
challenges accoupling AI application in the pharmacy management fields.
Some questions included the Likert scale which is a psychometric five- or
seven-point scale primarily used in questionnaires to obtain participant’s
degree of agreement with a statement as shown in the figure
below.(Krabbe, 2017) We used selective (judgmental) sampling technique
to fill in the survey as we have sent it to different pharmacy managers from
different governorates in Egypt. The population size is about 3052
pharmacy managers. The sample size was calculated with the help of
Raosoft with 15% margin of error and 90% confidence level. We took a
sample of 37 respondents to answer the questionnaire. We used pareto
charts to show the results and analyze them. Pareto charts assisted us to
identify the vital few sources that are responsible for causing most of an
issue’s effect.

Figure (4) represents the Likert five-point scale (Flaticon, 2024)

While secondary data is data derived from like reference books, recent
journals, trusted internet web sites … etc. it includes results from
analysis of primary data. To determine the focus areas for this narrative
review, relevant articles were searched across multiple databases
including for example Google Scholar. Various search terms, such as
"Artificial intelligence, pharmacointelligence, BSC, AI in pharmacy,
customer satisfaction, pharmacists learning and growth, profitability in
pharmacies, pharmacy internal process improvement, etc." were
employed to identify pertinent literature.

42
13. Chapter four: Results and Data Analysis

13.1. Questionnaire about impact of artificial intelligence on

pharmacy management Sector
Here are the results of the questions represented in charts.

Figure (5) represents a bar chart showing the results of the

questionnaire’s first question asking about the affiliation of
respondents

The questionnaire was filled in by community pharmacy managers from

different governorates in Egypt mainly Cairo and others as Soghag and
Tanta. The responses indicate a diverse range of affiliations within the
pharmacy and healthcare sectors, including private pharmacies, hospitals,
healthcare ministries, and academic institutions. This diversity suggests
that perspectives on the impact of AI on pharmacy management come from
various professional backgrounds, each potentially offering unique
insights with AI implementation and utilization.

43
Figure (6) represents a pareto chart showing the results of the
questionnaire’s second question "How are you familiar with artificial
intelligence (AI) concept? "

The responses to this question indicate a varied level of familiarity with the
concept of artificial intelligence (AI) among the respondents with few
respondents who do not feel familiar with AI or are not aware of its
concepts and applications, a significant number of respondents are
undecided about their familiarity with AI and a combined total of 13
respondents agree or strongly agree with their familiarity with AI.
Addressing the knowledge gap through targeted education and training
could help enhance understanding and readiness for integrating AI into
pharmacy practices effectively.

44
Figure (7) represents a pareto chart showing the results of the
questionnaire’s third question "Which AI applications do you use or
interact with on a regular basis? "

The responses reveal a diverse landscape of AI application usage among

respondents, with virtual assistants being the most commonly interacted-
with AI technology. However, a notable portion of respondents do not
regularly engage with AI applications, which may influence their
perceptions and readiness for AI integration in pharmacy management.
Exploring further education and practical demonstrations could bridge this
gap and foster greater adoption and understanding of AI's potential benefits
in pharmacy settings.

45
Figure (8) represents a pareto chart showing the results of the
questionnaire’s fourth question “Have you previously used any artificial
intelligence software or application in pharmacy related issues?”

The results highlight a gap in the adoption and utilization of AI

technologies specifically within pharmacy settings. Despite a small
percentage having prior experience, the majority of respondents have not
yet engaged with AI in pharmacy-related contexts. Addressing this gap
effectively could lead to increased acceptance and integration of AI
solutions in pharmacy management practices.

46
Figure (9) represents a pareto chart showing the results of the
questionnaire’s fifth question “If yes, Mention the name of AI software
or application used....”

These findings reveal that few respondents have engaged with AI software
or applications like ChatGPT in pharmacy-related contexts.

47
Figure (10) represents a pareto chart showing the results of the
questionnaire’s sixth question “Which aspect of pharmacy management
would be mostly affected by the implementation of AI in your opinion?”

The responses indicate varying perceptions regarding which aspect of

pharmacy management would be most affected by the implementation of
artificial intelligence (AI). A significant number of respondents foresee AI
affecting multiple aspects of pharmacy management, including customer
satisfaction, profitability, employee learning and growth, and internal
process improvement with customer satisfaction identified as a primary
area of influence. This indicates a broad recognition of AI's potential to
transform various facets of pharmacy operations.

48
Figure (11) represents a pareto chart showing the results of the
questionnaire’s seventh question “How important do you think it is for
pharmacists to continuously update their skills to adapt to emerging AI
technologies in the field?”

These results emphasize a general consensus among respondents regarding

the importance of pharmacists updating their skills to adapt to emerging AI
technologies. While a small number express reservations or uncertainty,
the majority acknowledge the necessity for ongoing professional
development in response to technological advancements. This underscores
the importance of incorporating AI education and training into pharmacy
curricula and continuing education programs to prepare pharmacists for the
evolving landscape of healthcare delivery.

49
Figure (12) represents a pareto chart showing the results of the
questionnaire’s eighth question “Do you believe AI will significantly
change the nature of work in the future?”

The responses to this question demonstrate a strong belief among the

majority of respondents regarding the transformative impact of artificial
intelligence (AI) on the future nature of work. The overwhelming belief
that AI will have a significant impact highlights the importance of
proactive adaptation and readiness in preparing for technological
advancements, including within pharmacy management.

50
Figure (13) represents a pareto chart showing the results of the
questionnaire’s nineth question “Do you think AI can enhance
innovation and creativity in the workplace?”

These results indicate a predominant belief among respondents that AI has

the capacity to enhance innovation and creativity in the workplace. This
positive outlook highlights the perceived opportunities for AI to foster new
ideas, improve processes, and drive forward-thinking initiatives within
pharmacy management and beyond. On the other hand, A minority of
respondents do not believe that AI can contribute to enhancing innovation
and creativity in the workplace. This viewpoint may stem from concerns
about AI's ability to replicate human creativity or the potential for AI to
stifle innovation through over-reliance on automated solutions.

51
Figure (14) represents a pareto chart showing the results of the
questionnaire’s 10th question “On a scale of 1 to 5, Do you believe that
AI systems can improve inventory management, reduce overstock and
stockouts through better demand forecasting?”

The majority of respondents (24 out of 37) believe that AI systems can
improve inventory management, reduce overstock, and minimize stockouts
through better demand forecasting. This indicates a high level of
confidence in AI's capability to enhance these aspects of pharmacy
management. However, it's noteworthy that a considerable number of
respondents (11 out of 37) were undecided, suggesting a need for further
education or clarification regarding the potential benefits of AI in this
context.

52
Figure (15) represents a pareto chart showing the results of the
questionnaire’s 11th question “On a scale of 1 to 5, Do you think
automated dispensing AI systems can decrease human errors, enhance
efficiency and speed up medication dispensing process?”

The data suggests a generally positive perception of automated dispensing

AI systems among respondents, highlighting expectations for reduced
errors, improved efficiency, and faster medication dispensing processes.
However, further exploration into concerns or barriers to adoption among
those who disagreed or were undecided could provide additional insights
into implementation challenges or educational needs.

53
Figure (16) represents a pareto chart showing the results of the
questionnaire’s 12th question “Do you think it is beneficial or safe to use
AI based chatbots to answer patients frequently asked questions, provide
product information, availability, and allow clients to order them?”

While there is cautious optimism from some respondents about the benefits
of AI-based chatbots in handling patient inquiries and facilitating orders,
there is also a notable segment that holds concerns or reservations. Further
exploration could help identify specific concerns or barriers to adoption
among those who are undecided or disagree with the use of AI-based
chatbots for these purposes.

54
Figure (17) represents a pareto chart showing the results of the
questionnaire’s 13th question “On a scale of 1 to 5, Do you believe AI can
enhance pharmacist learning and growth?”

There is significant support for the idea that AI can enhance pharmacist
learning and growth, but there are also dissenting voices and a notable
segment of undecided respondents. Further research and dialogue could
help address concerns and explore specific ways AI can be effectively
integrated into pharmacist education and professional growth initiatives.

55
Figure (18) represents a pareto chart showing the results of the
questionnaire’s 14th question “On a scale of 1 to 5, Do you think AI
powered pharmacies can minimize costs, increase revenues leading to
higher long-term profitability?”

There is notable support for the idea that AI can contribute to cost
minimization, revenue increase, and long-term profitability in pharmacies,
also there are reservations and a significant segment of undecided
respondents.

56
Figure (19) represents a pareto chart showing the results of the
questionnaire’s 15th question “Do you believe that AI has the potential to
replace certain roles currently held by pharmacists?”

These results indicate a mixed perception among respondents regarding the

extent to which AI could replace pharmacist roles. While a significant
portion acknowledge the possibility of AI impacting roles, the majority
believe that AI will not completely replace pharmacists and will instead
complement or enhance their current roles. The varying opinions suggest a
nuanced view on how AI might integrate into pharmacy practice without
displacing human professionals entirely.

57
Figure (20) represents a pareto chart showing the results of the
questionnaire’s 16th question “Do you think you will encounter any
challenges or difficulties while integrating AI into your pharmacy
management system?”

These responses reflect a range of anticipated challenges related to

integrating AI in pharmacy settings, including financial considerations,
human resource issues, resistance to change, and operational concerns.
Addressing these challenges may require strategic planning, investment in
training and education, and effective change management strategies to
successfully integrate AI technologies while minimizing disruptions and
maximizing benefits.

58
Figure (21) represents a pareto chart showing the results of the
questionnaire’s 17th question “What ethical considerations do you think
should be addressed in Ai development?”

These responses indicate a strong consensus among respondents regarding

the broad spectrum of ethical challenges and considerations that
accompany AI development in pharmacy management and healthcare
more broadly. Addressing these ethical issues is essential to ensure that AI
technologies are deployed responsibly and ethically, thereby fostering trust
and maximizing benefits for all stakeholders involved.

59
Figure (22) represents a pareto chart showing the results of the
questionnaire’s 18th question “Do you think AI should be regulated by
governments?”

These responses reflect varying perspectives on the role of government

regulation in AI, highlighting the complex and evolving nature of
discussions surrounding AI governance. The majority opinion favoring
regulation suggests a recognition of the potential risks and ethical
implications associated with AI, while those who are undecided may
require further clarity on regulatory frameworks and their implications for
AI development and deployment.

60
Are there any concerns or risks associated with the use of AI in pharmacy
management and supply chain that you think should be addressed?
(optional)
8 responses

No

‫في حالة ظهور خلل قد يؤدي ذلك الي مشاكل كثيرة في حال االعتماد عليه بشكل كبير‬

certainly, there should be interaction between pharmacist and AI to deliver updated in

medicine field to deliver best experience to customers

I think we have to limit this process as we have narcotic drugs which may be used
illegal

Medical error, patient preference, emotional contact and support

If there is a problem in ai app may result in big mistakes in everything and will cost a
lot

Figure (23 ) represents an essay question showing the results of the

questionnaire’s 19th question “Are there any concerns or risks associated
with the use of AI in pharmacy management and supply chain that you
think should be addressed?”

These points highlight various aspects where careful consideration and

management are necessary to mitigate risks and ensure AI technologies are
implemented responsibly and effectively in pharmacy management and
supply chain operations.

61
13.2. Interpretation and Findings

Based on the responses gathered from the questionnaire on the impact of

artificial intelligence (AI) on pharmacy management and secondary data in
the review literature, the following conclusions and findings can be drawn:

A. Familiarity and Usage of AI: Most respondents (83.8%) have not

previously used AI software or applications in pharmacy-related
issues, indicating a relatively low current integration of AI in this
sector in Egyptian community.

B. Perceived Impact of AI: There is a widespread belief (78.4%) that

AI will significantly change the nature of work in pharmacy
management in the future. This suggests a strong anticipation of AI's
transformative potential.

C. Benefits of AI: Respondents generally perceive AI positively in

terms of enhancing innovation and creativity (67.6%) and improving
specific aspects mainly inventory management (combined "Agree"
and "Strongly agree" responses totaling 64%), then pharmacist
learning and growth ("Agree" and "Strongly agree" responses
totaling 62.1%) and automated dispensing systems (combined
"Agree" and "Strongly agree" responses totaling 62%)

D. Challenges and Concerns: Key challenges anticipated include

difficulty in finding, hiring, or training staff with AI expertise
(43.2% identified this as a challenge) and concerns about resistance
to change among employees (35.1%). Cost implications for
implementing AI (32.4%) and potential discrepancies in inventory
management (8.1%) were also highlighted.

E. Ethical Considerations: Privacy (21.6%), transparency (2.7%),

accountability (2.7%), and fairness (5.4%) were identified as
important ethical considerations in AI development. A significant
majority (72.9%) recognized the importance of addressing all these
ethical aspects in AI deployment.

62
 F. Regulation: A majority (54.1%) of respondents believe that AI
should be regulated by governments, reflecting concerns about the
need for oversight and governance to manage risks and ensure
ethical standards in AI applications within pharmacy management.

G. Concerns and Risks: Concerns include the potential for significant

errors if AI malfunctions (5.4%), the need for pharmacist-AI
interaction to maintain updated medical knowledge (2.7%), and the
cautious approach required due to issues such as the misuse of AI in
handling narcotic drugs.)%2.7(

In summary, while there is optimism about the potential benefits of AI in

pharmacy management, such as improving efficiency and patient care,
there are also clear concerns regarding implementation challenges, ethical
considerations, and the need for regulatory frameworks. These findings
underscore the importance of balanced integration strategies that address
both the opportunities and risks associated with AI in pharmacy
management. Future efforts should focus on educating stakeholders,
addressing workforce readiness, and establishing robust ethical guidelines
and regulatory frameworks to maximize the benefits of AI while mitigating
potential pitfalls.

63
13.3. Data Reliability

Cronbach’s alpha (α), developed by Lee Cronbach in 1951, assesses the

reliability or internal consistency of a set of survey items. It is used to
evaluate whether multiple questions on a Likert scale measure latent
variables such as a person's conscientiousness, neuroticism, or openness
consistently. In essence, Cronbach’s alpha determines how closely related
a group of test items is, indicating their collective reliability (Tavakol &
Dennick, 2011). The formula for Cronbach’s alpha is:

where:
▪ N = the number of items.
▪ c̄ = average covariance between item-pairs.
▪ v̄ = average variance.

A rule of thumb for interpreting alpha for dichotomous questions (i.e.

questions with two possible answers) or Likert scale questions is (Tavakol
& Dennick, 2011):

▪ α ≥ 0.9 …………………………………………..……. Excellent

▪ 0.9 > α ≥ 0.8 ………………………………………….. Good
▪ 0.8 > α ≥ 0.7 …………………………………………. Acceptable
▪ 0.7 > α ≥ 0.6 …………………………………………. Questionable
▪ 0.6 > α ≥ 0.5 …………………………………………. Poor
▪ 0.5 > α ………………………………………………...Unacceptable

The Cronbach’s Alpha for the results is 0.6771 calculated by Minitab

statistical software, indicating acceptable validity and internal consistency.

64
14. Chapter five: Conclusions and Future
Recommendations

➢ Conclusions

In conclusion, our study, which draws on both primary and secondary data,
highlights the significant impact of integrating AI into pharmacy
management systems on the broader healthcare sector. AI technologies
improve efficiency in medication dispensing, optimize inventory
management, enhance patient safety and aid in employees learning and
growth through advanced analytics and predictive capabilities, all of which
contribute to increased profitability and business growth. While challenges
such as data privacy issues and initial implementation costs exist, the long-
term advantages of AI in pharmacy management are substantial. AI
promises to transform how medications are prescribed, dispensed, and
monitored, leading to improved healthcare outcomes for patients globally.
As AI technology continues to advance, its role in pharmacy management
is expected to expand, further boosting operational efficiency and patient
care.

➢ Future Recommendations

It is essential for pharmacists and pharmacy managers to regularly engage

in training programs and become familiar with AI technologies to stay
current with advancements. This can include workshops, seminars, and
continuous education modules focusing on AI applications in healthcare
and pharmacy management. By proactively learning about AI and
integrating it into their practice, they can minimize resistance to new skills
and better prepare for potential shifts in pharmacy management systems.
Although this requires dedication and effort, including ongoing education
and skill development, the long-term benefits are substantial. Embracing
AI not only ensures readiness for future changes but also positions
pharmacies to leverage cutting-edge technology for enhanced operational
efficiency and improved patient care. As AI continues to shape the future
of the industry, staying ahead of these developments will be crucial for
65
maintaining a competitive edge and achieving sustained success.
Longitudinal studies should be conducted to track the evolving impact of
AI on pharmacy management over time with including more performance
dimensions. With Fostering collaborations between academia, industry
stakeholders, and regulatory bodies, we will be able to develop guidelines
and best practices for AI integration in pharmacy management. We should
focus on reallocating resources to enhance technological infrastructure in
pharmacies to support AI implementations. By implementing these future
recommendations, stakeholders can better navigate the integration of AI
technologies in pharmacy management, maximizing benefits while
addressing challenges and ethical considerations.

66
15. Appendix

The questionnaire’s link:

[Link]
1j9cxHkZCgdINlzdEJ-slM4RTkvaxzr1j4HkWw/viewform?usp=sf_link

Questionnaire about impact of artificial intelligence on

pharmacy management Sector

1. Affiliation (optional)

2. How are you familiar with artificial intelligence (AI) concept?

▪ Strongly disagree
▪ Disagree
▪ Undecided
▪ Agree
▪ Strongly agree

3. Which AI applications do you use or interact with on a regular basis?

▪ Virtual assistants (siri, alexa,..)
▪ Recommendation systems
▪ Smart home devices
▪ Autonomous vehicles
▪ None
▪ Others

4. Have you previously used any artificial intelligence software or

application in pharmacy related issues?
▪ Yes
▪ No

5. If yes, Mention the name of AI software or application used....

6. Which aspect of pharmacy management would be mostly affected by

the implementation of AI in your opinion?

67
▪ Customer satisfaction
▪ Profitability
▪ Employee learning and growth
▪ Internal process improvement
▪ All of above
▪ none

7. How important do you think it is for pharmacists to continuously update

their skills to adapt to emerging AI technologies in the field?
▪ Strongly disagree
▪ Disagree
▪ Undecided
▪ Agree
▪ Strongly agree

8. Do you believe AI will significantly change the nature of work in the

future?
▪ Yes
▪ No
▪ Maybe

9. Do you think AI can enhance innovation and creativity in the

workplace?
▪ Yes
▪ No
▪ Maybe

10. On a scale of 1 to 5, Do you believe that AI systems can improve

inventory management, reduce overstock and stockouts through better
demand forecasting?
▪ Strongly disagree
▪ Disagree
▪ Undecided
▪ Agree
▪ Strongly agree

68
11. On a scale of 1 to 5, Do you think automated dispensing AI systems
can decrease human errors, enhance efficiency and speed up medication
dispensing process?
▪ Strongly disagree
▪ Disagree
▪ Undecided
▪ Agree
▪ Strongly agree

12. Do you think it is beneficial or safe to use AI based chatbots to answer

patients frequently asked questions, provide product information,
availability, and allow clients to order them?
▪ Strongly disagree
▪ Disagree
▪ Undecided
▪ Agree
▪ Strongly agree

13. On a scale of 1 to 5, Do you believe AI can enhance pharmacist

learning and growth?
▪ Strongly disagree
▪ Disagree
▪ Undecided
▪ Agree
▪ Strongly agree

14. On a scale of 1 to 5, Do you think AI powered pharmacies can

minimize costs, increase revenues leading to higher long-term
profitability?
▪ Strongly disagree
▪ Disagree
▪ Undecided
▪ Agree
▪ Strongly agree

69
15. Do you believe that AI has the potential to replace certain roles
currently held by pharmacists?
▪ Yes
▪ Not fully
▪ No

16. Do you think you will encounter any challenges or difficulties while
integrating AI into your pharmacy management system?
▪ Yes, increased costs for implementing AI
▪ Yes, difficulty in finding, hiring or training staff with AI expertise
▪ Yes, resistance to change from employees
▪ Yes, AI will cause discrepancies in inventory management
▪ No, I don't think there will be any challenges

17. What ethical considerations do you think should be addressed in Ai

development?
▪ Privacy
▪ Transparency
▪ Accountability
▪ Fairness
▪ All of the above

18. Do you think AI should be regulated by governments?

▪ Yes
▪ No
▪ Undecided

[Link] there any concerns or risks associated with the use of AI in

pharmacy management and supply chain that you think should be
addressed? (optional)

70
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