Managerial framework for evaluating AI chatbot integration: Bridging organizational readiness and technological challenges

The ubiquity of chatbots continues to expand offering a multitude of benefits for firms. While acknowledging the capabilities of AI chatbots to handle customer interactions and improve response times, we critically examine several challenges they present - including interoperability challenges, data protection concerns, and biased output. This research presents a novel framework for managers to assess a firm's readiness to adopt AI chatbot technology through the lens of the Technology Acceptance Model (TAM) which has been adapted to account for the critical challenges associated with the emerging technology. Incorporating four factors namely subjective norms, compatibility, facilitating conditions and trust allows for a more holistic assessment of a firm's readiness to adopt AI chatbot technology. The framework, together with a readiness assessment tool, provides a comprehensive mechanism for managerial decision-making, focusing on the adoption of AI chatbots enhancing the strategic implementation of these technologies in customer service, sales, and marketing business functions. By exploring these extended factors, our article offers an in-depth perspective on the managerial implications of integrating AI chatbots into business processes, ensuring an informed and holistic approach to technology adoption.