Customer Experience 2.0: Investigating the Effects of AI Chatbots on Satisfaction and Advocacy in Chennai Banks

Abstract

This study explores the impact of AI chatbots on customer experience, satisfaction, and advocacy in the banking sector in Chennai. Using a sample of 135 respondents, the study employs descriptive statistics, correlation analysis, and structural equation modeling to examine the relationships between key variables such as reliability, responsiveness, interactivity, usability, extrinsic and intrinsic values, customer satisfaction, and customer advocacy. The results reveal that customers generally perceive AI chatbots positively, with high scores for reliability, responsiveness, and usability, all contributing to enhanced customer satisfaction and advocacy. However, issues related to discriminant validity were identified, suggesting potential overlap in the constructs. The model fit statistics indicate a generally good fit, with areas for refinement to improve predictive accuracy. The study concludes by offering suggestions for enhancing the chatbot experience, such as improving AI complexity, ensuring better differentiation between constructs, and refining the structural model for greater accuracy.