Case Study Written by: Alyssa Emmanuel
Marketing Professional
MBA Candidate
As artificial intelligence (AI) continues to reshape digital customer service, businesses are increasingly implementing chatbots to streamline consumer interactions. While AI-powered solutions offer efficiency and scalability, questions remain about their impact on trust, satisfaction, and overall consumer behavior. This paper explores consumer perceptions of AI-based customer service versus human support, with a focus on trust levels, satisfaction rates, and influence on buying decisions and brand perception.
Customer service has undergone a dramatic transformation in recent years with the emergence of AI-powered chatbots. These systems provide automated support, often mimicking human-like interactions, to help customers navigate issues such as order tracking, product inquiries, and returns. The appeal lies in the speed and cost-efficiency of bots, but can they truly replace human agents in building trust and delivering satisfying experiences?
This study aims to explore the following key research questions:
Existing research indicates that while chatbots are accepted for low-stakes interactions (Salesforce, 2023), trust and empathy remain critical shortcomings. Several studies (Accenture, 2022; PwC, 2023) show that poor AI experiences can lead to customer churn, especially when bots fail to resolve complex issues or simulate human empathy. Generational differences further complicate the picture - Millennials and Gen Z are more comfortable with bots, whereas older consumers prefer human interaction (Statista, 2023).
This paper draws on a mixed-methods approach, including:
Survey metrics included perceived trustworthiness, satisfaction level, likelihood of repeat purchase, and likelihood to recommend the brand.
The findings reveal a nuanced consumer landscape. While AI excels in speed and convenience, it lacks the relational depth of human agents. Trust appears to be context-dependent: for transactional tasks, consumers tolerate and even prefer bots. However, for emotional support or complaint resolution, the human element remains indispensable.
Moreover, the study underscores the importance of designing bots with transparency—consumers prefer knowing when they’re talking to a machine. The data also support a hybrid support model as the optimal approach for balancing efficiency with empathy.
AI chatbots are not a replacement for human customer service—they are a supplement. When implemented strategically, they enhance the customer experience, reduce response times, and influence purchase decisions positively. However, over-reliance on bots or poorly trained AI can backfire, harming both satisfaction and brand loyalty.
For organizations seeking to integrate AI into customer service, the recommendation is clear: deploy AI for speed, and escalate to humans for depth.
Copyright © 2023 Advanced Envisions - All Rights Reserved
Advanced Envisions