The “Other” Agent: Interaction with AI and Its Implications on Social Presence Perceptions of Online Customer Experience

Abstract

Advancements in Artificial Intelligence (AI) such as digital assistants and conversational agents are being adopted fast and wide across consumer industries such as e-commerce, where they act as frontline service agents and interact with customers in service encounters. It is suggested that technology is no longer only the mediator of communication between customers and a company but has potential to become the “other’’ with whom customers interact. Based on this idea, this research adopts Social Response Theory to measure the effects of anthropomorphism of AI, para-social interaction with AI and personalization on perceived social presence of the customer experience, customer loyalty and intentions to engage in eWOM. An online survey with a sample of online consumers, who have previously engaged with a form of AI-technology, is conducted. Quantitative analysis of the data through CFA and SEM shows that perceived social presence has a strong effect on both customer intentions to engage in eWOM and customer loyalty. Further, social presence serves as a mediator for the relationship between an anthropomorphism of AI and para-social interaction with AI on eWOM intentions and customer loyalty. A discussion of these findings and implications concludes this paper.