Abstract/Description
Purpose
As businesses increasingly adopt advanced AI chatbots, understanding what drives meaningful customer engagement is crucial. This study explores how perceived interactivity, personalization, and ease of use influence customer value co-creation. It also investigates the moderating role of customer AI literacy a factor often overlooked in existing literature.
Study Design/ Methodology
The study is based on data collected from 300 respondents in Karachi who have prior experience using AI chatbots. Structural Equation Modeling (SEM) using Smart PLS was employed to assess both direct effects and moderating relationships.
Findings
Results indicate that perceived interactivity and personalization significantly enhance customer value co-creation. However, perceived ease of use does not show a direct significant effect. Customer AI literacy moderates the relationships between personalization and value co-creation, and between ease of use and value co-creation, but does not moderate the effect of interactivity.
Originality/ Value
The study contributes to AI-driven service research by incorporating customer AI literacy as a moderating variable. It offers a nuanced understanding of how different chatbot features contribute to value co-creation, especially when user capability is considered.
Research Limitation
The research is limited to one geographic location and uses self-reported data, which may introduce bias. Additionally, it does not account for potential mediating factors such as trust in AI.
Practical and Social Implications
E-commerce platforms should enhance chatbot personalization and interactivity while promoting AI literacy through user-focused education to improve value co-creation. Besides, Fostering AI literacy and user-centric chatbot design can enhance digital engagement, inclusivity, and consumer well-being.
Keywords
AI Chatbots, Perceived Interactivity, Perceived Personalization, Perceived Ease of Use, Customer AI Literacy, Value Co-Creation
Track
Marketing
Session Number/Theme
Marketing - Session II
Session Chair
Dr. Mahar Ali
Start Date/Time
14-6-2025 10:55 AM
End Date/Time
14-6-2025 12:35 PM
Location
MCC -15 2nd Floor, AMAN CED Building
Recommended Citation
Ather, M., & Riaz, H. (2025). From Automation to Collaboration: Understanding AI Chatbot Effectiveness in Customer Value Co-Creation. IBA SBS 4th International Conference 2025. Retrieved from https://ir.iba.edu.pk/sbsic/2025/program/76
From Automation to Collaboration: Understanding AI Chatbot Effectiveness in Customer Value Co-Creation
MCC -15 2nd Floor, AMAN CED Building
Purpose
As businesses increasingly adopt advanced AI chatbots, understanding what drives meaningful customer engagement is crucial. This study explores how perceived interactivity, personalization, and ease of use influence customer value co-creation. It also investigates the moderating role of customer AI literacy a factor often overlooked in existing literature.
Study Design/ Methodology
The study is based on data collected from 300 respondents in Karachi who have prior experience using AI chatbots. Structural Equation Modeling (SEM) using Smart PLS was employed to assess both direct effects and moderating relationships.
Findings
Results indicate that perceived interactivity and personalization significantly enhance customer value co-creation. However, perceived ease of use does not show a direct significant effect. Customer AI literacy moderates the relationships between personalization and value co-creation, and between ease of use and value co-creation, but does not moderate the effect of interactivity.
Originality/ Value
The study contributes to AI-driven service research by incorporating customer AI literacy as a moderating variable. It offers a nuanced understanding of how different chatbot features contribute to value co-creation, especially when user capability is considered.
Research Limitation
The research is limited to one geographic location and uses self-reported data, which may introduce bias. Additionally, it does not account for potential mediating factors such as trust in AI.
Practical and Social Implications
E-commerce platforms should enhance chatbot personalization and interactivity while promoting AI literacy through user-focused education to improve value co-creation. Besides, Fostering AI literacy and user-centric chatbot design can enhance digital engagement, inclusivity, and consumer well-being.
