The impact of artificial intelligence on customer behavior

1. KATHRYN MALLARI
MSMK: 620 MARKETING ANALYTICS
BELLEVUE UNIVERSITY
DR. JULIA CRONIN-GILMORE
IMPACT OF ARTIFICIAL INTELLIGENCE ON
CUSTOMER BEHAVIOR

2. Hypothesis
Consumers are more likely to use AI-enabled customer service
technology rather than speaking to a live person.
1. Determine the comfort level in the use of AI.
2. Determine the overall experience consumers have had with AI.
3. Determine the preferred AI delivery method.
4. Determine the future outlook of AI.
Objectives
Impact of AI on Customer Behavior

3. Determine the Comfort Level in the use of AI
How would you define AI?
Respondents identify AI as a
technology that contains some
type of human element. They
also understand that it’s
something more complex than
just answering basic questions.
20%
40%
40%

4. I am comfortable with buying products
directly from a chatbot online
Yes: 20%
No: 80%
Which development of AI technology are
you most uncomfortable with?
Speech
Recognition Computer
Vision
Conversational
Natural Language
Processing
None.
Comfortable with all.
Determine the Comfort Level in the use of AI

5. How often are you likely to
use AI chat bots when
contacting customer service?
Once:
15%
Few:
60%
Always:
5%
Never:
20%
1
2
3
5
4
Strongly Disagree Strongly Agree
When contacting a company online
to ask a simple question, I don’t
mind if the chatbot is a computer.
Determine the Comfort Level in the use of AI

6. Determine the Comfort Level in the use of AI
Do you like seeing product
suggestions of “Things You May
Like” while shopping online?
Yes
70%
No
70%
Respondents are generally comfortable with the use of
AI. Most don’t mind if they have to communicate with
a chatbot, especially if it’s for an easy task. They like
when AI works in their favor without any prompts.
However, if given an option, respondents would rather
not use chatbots when completing a purchase.

7. Determine the Overall Experience Consumers
Have had With AI:
Customer confidence in tech vs.
perceived accuracy in tech
Not confident /
Poor accuracy
0
1
2
3
4
5
6
7
8
9
10
0 1 2 3 4 5 6 7 8 9 10
confidence accuracy
Extremely Confident/
High accuracy
Reasons to use AI for customer service
1. Fast
2. Available
3. Accurate
4. Don’t have to speak to a
live person
5. Personalized

8. Reasons not to use AI for customer service
1.Neverget
answerright
2. Like live
person
3. Invasionof
privacy
4.Takestoo
long
5. Not
comfortable
Respondents did not have great experiences
using AI, which results in them having less
confidence with the technology. Many of
them thought AI was the fastest method of
communication, but the quality of answers
remain low.
Determine the Overall Experience Consumers
Have had With AI:

9. Determine the Preferred AI Delivery Method
0
1
2
3
4
5
6
7
8
9
Fast Accurate Polite Knowledgeable Patient
Live Person AI
100
50
10
Prefer to speak to chatbot
instead of a live person:
15% say Yes
100
50
10
Prefer to speak to live person
instead of a chatbot:
70% say Yes
Top reasons to speak with live
person vs AI tech

10. Determine the Preferred AI Delivery Method
1
2
3
5
4
Email
1.8
Phone (Live
person)
2.5
Chatbot
3.6
Phone
(computer)
3.6
Text
4.1
When contacting a company I
like to use …
Respondents like how they can utilize AI as a
quick method to get an answer, but realize it
won’t always be accurate. Respondents don’t
care about patience or politeness. Instead,
they focus on the high speed and accuracy of
responses. Email is also the best form of
contact as it allows for long-form content,
instead of quick back-and-forth responses like
in text messages.

11. Determine the Future Outlook of AI
1 year:
0%
5 years:
20%
10
years:
40%
Never:
40%
Human customer service roles will
be completely replaced by AI in:
The company that will develop the
most advanced AI first:
- “Random start up”
- “Too early to tell”

12. Determine the Future Outlook of AI
AI will become more accurate
as the technology develops
Strongly Disagree Strongly Agree
Most respondents believe AI will become more
accurate as the technology develops, though many
don’t see this happening anytime soon. Sixty percent
of respondents see AI taking over customer service
jobs within the next 15 years, with forty percent
believing this will never happen. Many also believe
that Google will be the first to develop the most
advanced technology. This could be because
respondents are exposed to Google AI the most,
especially when using search.
0
1
2
3
4
5
6
1 2 3 4 5 6 7 8 9 10

13. Demographics
Age
10
5
1
18-24 25-34 35-44 45-54 55-64+
10% 10% 10%55% 15%
0
1
2
3
4
5
6
7
8
0 2 4 6 8 10 12
Number of Devices
Number of devices
Many are Millennials which may explain their high comfort level with AI, and the speed at which they want
responses quickly. Millennials also own 2x more devices than those in the older generation.

14. Summary
The hypothesis was proven wrong. When
presented with an opportunity to speak to a live-
person or chatbot, respondents overwhelmingly
chose to speak to a live-person. Despite it’s
convenience, many believe the AI technology is
not equipped for simple nor complex tasks. This
could be because of their exposure to advanced
voice assistants, like Google Home or Apple Siri,
they may have high expectations for how all AI
should be developed.
Generation does have an affect on how AI is
perceived. The older generation think AI takes too
long and that their customer service problem would
be solved by speaking with a live person. On the
other hand, the younger generation thinks AI
accuracy is poor and think their problems can be
best solved through email. However both
generations are optimistic about AI improving within
the next five to ten years.