Artificial Intelligence Effectiveness in Customer Experience at Retail

Abstract

Many academics and practitioners now understand artificial intelligence (AI) as a new way for brands to interact with clients and a tool to improve customer experience. Many companies have implemented AI systems at their offline stores to enhance customer experience. However, some studies reveal that most individuals tend to prefer human interactions. This research aims to understand consumers' perceptions of the benefits of using AI in retail and how this can contribute to a positive experience. This study used an online survey distributed to a sample of customers of a well-known international retailer. Findings indicate that AI effectiveness, studied by the customer experience proxy, impacts perceived service quality, customization, and brand trust, positively impacting brand commitment and loyalty. The scales and the model were assessed and validated for this data. This study reinforces how AI can enable customer experience and, by doing so, help retailers to have trusting clients, committed individuals to the point of sale, and even develop brand loyalty.