Young consumers’ Perceptions of AI-Powered in-Car Personalized Services in a Growing Market for Smart Cars

Abstract

Artificial Intelligence (AI) has induced personalized services that augment consumers’ in-car experience, aid their decision-making, and help delegate their tasks based on their needs, choices, and history. Although these services have many advantages, their adoption is unknown in the growing smart car market. This study examines consumer perceptions of AI-powered personalized services in cars in India. A literature review is carried out to identify consumer perceptions as determinants from previous personalization studies and a conceptual framework is formulated by extending the Technology Acceptance Model (TAM). Data is collected using a questionnaire-based survey and is analyzed using Structural Equation Modeling (SEM). Results show that “perceived usefulness” and “perceived ease of use” are significant consumer adoption factors. “Perceived risks” significantly weakened their relationship on “behavioral intention”. This study provides practical recommendations to policymakers for protecting consumers’ personal data, to car OEMs for designing useful and easy-to-use services not only in luxury cars but also in the mainstream segment, and to marketers for building promotional strategies and advertisements targeting young consumers of the growing market.