AI service may backfire: Reduced service warmth due to service provider transformation

Abstract

Perceived service warmth, arising from interactions between customers and employees, is a fundamental component of the hospitality industry. However, as artificial intelligence (AI) facilities such as service robots and chatbots gradually replace the role of human staff, the inherent warmth of the hospitality industry may be under threat. Therefore, the current research aims to investigate how such service provider transformations might influence customer warmth perceptions, the underlying mechanism, and practical solutions for firms that plan to deploy AI facilities in the future. Using five studies (and a supplemental study), we demonstrate that AI (vs. human) service significantly reduces customers’ perceived service warmth due to the diminished mind perceptions (i.e., experience and agency) of AI staff as service providers. Such a warmth loss effect further leads to lower customers’ continuous usage intention of AI service. However, the effect is attenuated when AI staff interacts with customers using an informal (vs. formal) language style or for customers with a utilitarian (vs. hedonic) motivation. The findings of this research contribute to the literature on AI service and provide valuable insights for marketers into effective AI deployment in the hospitality industry.