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The dark side of AI-powered service interactions: exploring the process of co-destruction from the customer perspective

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  • Daniela Castillo
  • Ana Isabel Canhoto
  • Emanuel Said

Abstract

Artificial intelligence (AI)-powered chatbots are changing the nature of service interfaces from being human-driven to technology-dominant. As a result, customers are expected to resolve issues themselves before reaching out to customer service representatives, ultimately becoming a central element of service production as co-creators of value. However, AI-powered interactions can also fail, potentially leading to anger, confusion, and customer dissatisfaction. We draw on the value co-creation literature to investigate the process of co-destruction in AI-powered service interactions. We adopt an exploratory approach based on in-depth interviews with 27 customers who have interacted with AI-powered chatbots in customer service settings. We find five antecedents of failed interactions between customers and chatbots: authenticity issues, cognition challenges, affective issues, functionality issues, and integration conflicts. We observe that although customers do accept part of the responsibility for co-destruction, they largely attribute the problems they experience to resource misintegration by service providers. Our findings contribute a better understanding of value co-destruction in AI-powered service settings and provide a richer conceptualization of the link between customer resource loss, attributions of resource loss, and subsequent customer coping strategies. Our findings also offer service managers insights into how to avoid and mitigate value co-destruction in AI service settings.

Suggested Citation

  • Daniela Castillo & Ana Isabel Canhoto & Emanuel Said, 2021. "The dark side of AI-powered service interactions: exploring the process of co-destruction from the customer perspective," The Service Industries Journal, Taylor & Francis Journals, vol. 41(13-14), pages 900-925, October.
    • Handle: RePEc:taf:servic:v:41:y:2021:i:13-14:p:900-925
    DOI: 10.1080/02642069.2020.1787993
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    Cited by:

    1. Sleep, Stefan & Gala, Prachi & Harrison, Dana E., 2023. "Removing silos to enable data-driven decisions: The importance of marketing and IT knowledge, cooperation, and information quality," Journal of Business Research, Elsevier, vol. 156(C).
    2. Ting Liu & Chun Ma & Jiaqi Xue & Gang Li & Qiuli Lu, 2023. "The Impact of Tourist Operant Resources on Online Citizenship Behavior in Sustainable Tourism," Sustainability, MDPI, vol. 15(23), pages 1-18, November.
    3. Pei Li & Chunmao Wu & Charles Spence, 2023. "Comparing the influence of visual information and the perceived intelligence of voice assistants when shopping for sustainable clothing online," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    4. Li, Chia-Ying & Fang, Yu-Hui & Chiang, Yu-Hung, 2023. "Can AI chatbots help retain customers? An integrative perspective using affordance theory and service-domain logic," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    5. Kamoonpuri, Sana Zehra & Sengar, Anita, 2023. "Hi, May AI help you? An analysis of the barriers impeding the implementation and use of artificial intelligence-enabled virtual assistants in retail," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    6. Rahman, Muhammad Sabbir & Bag, Surajit & Hossain, Md Afnan & Abdel Fattah, Fadi Abdel Muniem & Gani, Mohammad Osman & Rana, Nripendra P., 2023. "The new wave of AI-powered luxury brands online shopping experience: The role of digital multisensory cues and customers’ engagement," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    7. Zhou, Cheng & Chang, Qian, 2024. "Informational or emotional? Exploring the relative effects of chatbots’ self-recovery strategies on consumer satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    8. Shirie Pui Shan Ho & Matthew Yau Choi Chow, 2024. "The role of artificial intelligence in consumers’ brand preference for retail banks in Hong Kong," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 292-305, June.
    9. Liao, Xia & Zheng, Yu-Hao & Shi, Guicheng & Bu, Huimei, 2024. "Automated social presence in artificial-intelligence services: Conceptualization, scale development, and validation," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    10. Mark Anthony Camilleri & Ciro Troise, 2023. "Live support by chatbots with artificial intelligence: A future research agenda," Service Business, Springer;Pan-Pacific Business Association, vol. 17(1), pages 61-80, March.

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