AI customer care implementation in the health and well-being market as a dynamic marketing capability

Abstract

Purpose: The paper shows the Artificial Intelligence (AI) company implementation process aimed at improving customer care, which is treated as an exemplification of crafting dynamic marketing capabilities. Design/methodology/approach: The study employs case study analysis, focusing on Philips in the health and well-being market. Findings: The paper provides Philips' AI integration process in customer care, emphasizing the use of GPT models and Retrieval Augmented Generation (RAG) to customize AI responses with company-specific data. Research limitations/implications: Future research should explore AI’s impact on other industries, incorporating quantitative financial and operational outcomes analysis. Longitudinal studies should assess how AI strategies evolve. Key areas for further investigation include ethical and privacy issues, AI implementation in small and medium enterprises (SMEs), and cross-cultural contexts. The research’s limitations include its single case study focus, lack of quantitative data, and short-term AI adoption analysis. Practical implications: AI tools, such as chatbots, can improve customer care efficiency, accuracy, and speed, reducing agent workload and enhancing consumer experiences. For Philips, AI integration in customer care leads to increased consumer satisfaction and loyalty. AI streamlines customer service, reduces operational costs, and allows businesses to scale support without proportional staffing increases, driving profitability and strengthening market positioning. However, human supervision remains critical to ensure accuracy and prevent AI-generated errors, while privacy safeguards must be in place to protect data. Originality/value: The study highlights AI's transformative role in helping businesses navigate market complexities and the use of new technology in improving customer care processes. Keywords: artificial intelligence, customer care, dynamic marketing capability, the health and well-being market. Category of the paper: case study.