Impact of AI in Changing Customer Experience

Abstract

This study delves into the impact of artificial intelligence (AI) on customer experiences, focusing on flow, customer-brand identification, and advocacy. Drawing from flow theory and social identity theory, it suggests that AI quality's influence on flow and identification is moderated by employee responsiveness. Emerging technologies like IoT, AR, VR, virtual assistants, and AI-driven robots are reshaping the customer journey. The chapter proposes a framework for understanding their role and emphasizes the need for a fresh management approach, considering customer experience dimensions. Brands struggle with personalization, and integrating physical and digital experiences may be key for challenger brands. Success requires aligning technology, data, and culture for personalized customer experiences. This research contributes to understanding AI's role in service experiences and the customer-organization relationship in the modern era.