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The paradoxes of generative AI-enabled customer service: A guide for managers

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  • Ferraro, Carla
  • Demsar, Vlad
  • Sands, Sean
  • Restrepo, Mariluz
  • Campbell, Colin

Abstract

Generative artificial intelligence (GenAI) presents a disruptive innovation for brands and society, and the power of which is still yet to be realized. In the context of customer service, gen AI affords companies new possibilities to communicate, connect, and engage customers. This article draws on scholarly research and consultation with customer service leaders to present and discuss the possibilities for GenAI in the context of customer service, specifically GenAI chatbots. Importantly, this article presents potential paradoxes of GenAI-enabled customer service, adding to the debate about the role and impact of GenAI for brands. Specifically, we present six paradoxes of GenAI customer service: (1) connected yet isolated, (2) lower cost yet higher price, (3) higher quality yet less empathy, (4) satisfied yet frustrated, (5) personalized yet intrusive, and (6) powerful yet vulnerable. For each paradox, we suggest brand response strategies to mitigate downside and manage potential upside.

Suggested Citation

  • Ferraro, Carla & Demsar, Vlad & Sands, Sean & Restrepo, Mariluz & Campbell, Colin, 2024. "The paradoxes of generative AI-enabled customer service: A guide for managers," Business Horizons, Elsevier, vol. 67(5), pages 549-559.
    • Handle: RePEc:eee:bushor:v:67:y:2024:i:5:p:549-559
    DOI: 10.1016/j.bushor.2024.04.013
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    References listed on IDEAS

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    1. Robertson, Jeandri & Ferreira, Caitlin & Botha, Elsamari & Oosthuizen, Kim, 2024. "Game changers: A generative AI prompt protocol to enhance human-AI knowledge co-construction," Business Horizons, Elsevier, vol. 67(5), pages 499-510.
    2. Ramaul, Laavanya & Ritala, Paavo & Ruokonen, Mika, 2024. "Creational and conversational AI affordances: How the new breed of chatbots is revolutionizing knowledge industries," Business Horizons, Elsevier, vol. 67(5), pages 615-627.
    3. Osadchaya, Elena & Marder, Ben & Yule, Jennifer A. & Yau, Amy & Lavertu, Laura & Stylos, Nikolaos & Oliver, Sebastian & Angell, Rob & Regt, Anouk de & Gao, Liyu & Qi, Kang & Zhang, Will Zhiyuan & Zhan, 2024. "To ChatGPT, or not to ChatGPT: Navigating the paradoxes of generative AI in the advertising industry," Business Horizons, Elsevier, vol. 67(5), pages 571-581.
    4. Urbani, Roberto & Ferreira, Caitlin & Lam, Joey, 2024. "Managerial framework for evaluating AI chatbot integration: Bridging organizational readiness and technological challenges," Business Horizons, Elsevier, vol. 67(5), pages 595-606.
    5. Brewer, Jordan & Patel, Dhru & Kim, Dennie & Murray, Alex, 2024. "Navigating the challenges of generative technologies: Proposing the integration of artificial intelligence and blockchain," Business Horizons, Elsevier, vol. 67(5), pages 525-535.
    6. Abdelhalim, Esraa & Anazodo, Kemi Salawu & Gali, Nazha & Robson, Karen, 2024. "A framework of diversity, equity, and inclusion safeguards for chatbots," Business Horizons, Elsevier, vol. 67(5), pages 487-498.
    7. Retkowsky, Jana & Hafermalz, Ella & Huysman, Marleen, 2024. "Managing a ChatGPT-empowered workforce: Understanding its affordances and side effects," Business Horizons, Elsevier, vol. 67(5), pages 511-523.
    8. Berthon, Pierre & Yalcin, Taylan & Pehlivan, Ekin & Rabinovich, Tamara, 2024. "Trajectories of AI technologies: Insights for managers," Business Horizons, Elsevier, vol. 67(5), pages 461-470.
    9. Hannigan, Timothy R. & McCarthy, Ian P. & Spicer, André, 2024. "Beware of botshit: How to manage the epistemic risks of generative chatbots," Business Horizons, Elsevier, vol. 67(5), pages 471-486.
    10. Feng, Cai (Mitsu) & Botha, Elsamari & Pitt, Leyland, 2024. "From HAL to GenAI: Optimizing chatbot impacts with CARE," Business Horizons, Elsevier, vol. 67(5), pages 537-548.
    11. Cui, Yuanyuan (Gina) & van Esch, Patrick & Phelan, Steven, 2024. "How to build a competitive advantage for your brand using generative AI," Business Horizons, Elsevier, vol. 67(5), pages 583-594.
    12. Sundberg, Leif & Holmström, Jonny, 2024. "Innovating by prompting: How to facilitate innovation in the age of generative AI," Business Horizons, Elsevier, vol. 67(5), pages 561-570.

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