The paradoxes of generative AI-enabled customer service: A guide for managers

Carla Ferraro, Vlad Demsar, Sean Sands, Mariluz Restrepo and Colin Campbell

Business Horizons, 2024, vol. 67, issue 5, 549-559

Abstract: Generative artificial intelligence (GenAI) presents a disruptive innovation for brands and society, and the power of which is still yet to be realized. In the context of customer service, gen AI affords companies new possibilities to communicate, connect, and engage customers. This article draws on scholarly research and consultation with customer service leaders to present and discuss the possibilities for GenAI in the context of customer service, specifically GenAI chatbots. Importantly, this article presents potential paradoxes of GenAI-enabled customer service, adding to the debate about the role and impact of GenAI for brands. Specifically, we present six paradoxes of GenAI customer service: (1) connected yet isolated, (2) lower cost yet higher price, (3) higher quality yet less empathy, (4) satisfied yet frustrated, (5) personalized yet intrusive, and (6) powerful yet vulnerable. For each paradox, we suggest brand response strategies to mitigate downside and manage potential upside.

Keywords: Artificial intelligence; Generative AI; AI chatbots; Customer service; Customer support (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:67:y:2024:i:5:p:549-559

DOI: 10.1016/j.bushor.2024.04.013

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