CATONSVILLE, MD, September 23, 2019 – Chatbots, which use artificial intelligence to simulate human conversation through voice commands or text chats, incur almost zero marginal costs and can outsell some human employees by four times, so why aren't they used more often? According to new research, the main contributor is customer pushback.
Service industry outlets like American Eagle Outfitters and Domino's Pizza use chatbots, as well as online services like Amazon and eBay. The machines don't have "bad days" and never get frustrated or tired like humans, and they can save money for consumers, but new research in the INFORMS journal Marketing Science says if customers know about the chatbot before purchasing, sales rates decline by more than 79.7%.
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Ashley Smith
INFORMS
Catonsville MD
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