How do customers react to the integration of AI in customer experience

Abstract

Artificial Intelligence is revolutionizing customer service through enhanced customization and efficiency. Processing natural language makes interactions more human-like and guarantees higher levels of customer satisfaction. With the help of AI-enabled Chatbots communication with users occurs instantaneously, answering their questions and providing immediate responses. By forecasting preferences and suggesting recommendations through the evaluation of data collected on customers, artificial intelligence improves service quality. The amalgamation of modern technology and customer service provides a smooth, personalised and linear client experience. While AI-driven chatbots and tools prove time and cost-effective, occasional delays or failures instil human hesitation. The escalating trend of integrating AI in customer service significantly enhances the overall human experience, according to various studies. However, this study aims to address a dearth of empirical research on AI-enabled customer experiences. The absence of emotional intelligence in current AI models contributes to lacklustre customer commitment and engagement. This study investigates how customers react to Artificial intelligence being integrated into the customer service industry. The study scrutinizes pivotal factors—Perceived trustworthiness, personalization, perceived ease of use, perceived usefulness, accuracy, and quality of information provided—examining their interdependence in augmenting the customer experience. This study will utilise a proposed model which utilises the stimulus, organism, and response model. Results underscore how these factors contribute to improving customer loyalty through the mediation role of customer engagement. Hence, the study reveals the interconnectedness of these factors with brand affinity and loyalty, emphasizing the importance of these factors in fostering lasting customer relationships.