Transforming the Digital Service Landscape: The Role of Artificial Intelligence

Artificial intelligence (AI) is transforming the service sector spanning across healthcare, shopping, hospitality, beauty, and dining to mention a few, and its value is expected to continue its rise with positive outcomes for both companies and consumers. Despite its potential for success, successful AI implementation in services relies on consumer acceptance. This chapter discusses some key aspects which are crucial for consumer acceptance of AI-based services. First, the autonomy and appearance (i.e., humanized features) of the technology plays a role in consumer perception and, consequently, adoption. Second, the type of service as well as the specific brand or company implementing it matters in the eyes of consumers. Finally, consumers differ in their profile related to technological readiness and their trust in technology which will influence their response to AI services.