Can AI chatbots help retain customers? Impact of AI service quality on customer loyalty

PurposeThis study investigates whether and how the service quality of artificial intelligence (AI) chatbots affects customer loyalty to an organization.Design/methodology/approachBased on the sequential chain model of service quality loyalty, this study first classifies AI chatbot service quality into nine attributes and then develops a research model to explore the internal mechanism of how AI chatbot service quality affects customer loyalty. The analysis of survey data from 459 respondents provided insights into the interrelationships among AI chatbot service quality attributes, perceived value, cognitive and affective trust, satisfaction and customer loyalty.FindingsThe results show that AI chatbot service quality positively affects customer loyalty through perceived value, cognitive trust, affective trust and satisfaction.Originality/valueThis study captures the attributes of the service quality of AI chatbots and reveals the significant influence of service quality on customer loyalty. This study develops research on service quality in the information system (IS) field and extends the sequential chain model of quality loyalty to the context of AI services. The findings not only help an organization find a way to improve customers' perceived value, trust, satisfaction and loyalty but also provide guidance in the development, adoption, and post-adoption stages of AI chatbots.