MSc Dissertation
Unravelling the Potential of AI-Enabled Chatbots in Customer Service: Features, Limitations, and Pathways to Customer Satisfaction and Loyalty
Abstract
The integration of AI-powered chatbots into customer service has emerged as a focal point of interest in recent years, driven by the promise of interactive and bi-directional communication with customers. This study is both timely and essential, given the growing adoption of chatbots in service encounters, which is deemed to impact customer relations and business operations, both positively and negatively. Key features and design elements are meticulously dissected in this research, notable limitations are unravelled, and a roadmap for future research and managerial considerations is charted. A robust methodology was employed based on thematic analysis of secondary data from industry reports and business articles accessed through reliable databases. The findings reveal that customer adoption of chatbots falls short of expectations contrary to the mainstream assumption. This discrepancy can be attributed to their limitations in understanding language intricacies and the subtleties of nuanced phrasing, which are crucial aspects of genuine human communication. This limitation has given rise to another significant concern: the low resolution rates of chatbots, which pose a substantial barrier to customers fully embracing chatbots in customer service scenarios. Therefore, a strong preference for human involvement is observed, highlighting the enduring desire for a human touch in customer service. In light of these findings, the study presents theoretical and managerial implications designed to enhance the effectiveness of AI-powered chatbots in the realm of customer service in the conclusion.
