Rapid artificial intelligence (AI) improvements have transformed various industries, and the e-commerce sector is no irregularity. This literature review investigates customer service transformation in the e-commerce industry, explicitly directing the transition from usual help desks to AI-based chatbots. Adopting AI chatbots in e-commerce has raised main questions about their impact on customer ideas, user agreement, and the overall significance of AI applications in this field. This review aims to critically examine existing research on this topic, peeling light on AI chatbots’ potential benefits and challenges in reinforcing customer service. Additionally, it identifies gaps in the current literature and sets the stage for future research in this evolving study area.
AI-based Chatbots in E-commerce
AI chatbots have enhanced integral elements of conversational commerce in the e-commerce industry. Conversational commerce uses AI-driven chatbots and virtual assistants to facilitate real-time customer interactions and online retailers. Sidlauskiene et al. (2023) stress that these chatbots have been designed to engross customers in natural, human-like conversations, offering assistance, answering queries, and even assisting in the purchase process. This shift towards conversational commerce has allowed e-commerce businesses to provide round-the-clock customer support, personalized recommendations, and adept problem-solving, ultimately enhancing customer knowledge.
One of the critical fields of interest in adopting AI chatbots in e-commerce is their influence on customers’ ideas of products and pricing. According to Adam et al. (2020), AI chatbots can significantly impact how customers perceive the products and prices offered by online retailers. These chatbots can provide real-period product recommendations, establish customer priorities and browsing history, and enhance products’ perceived relevance and value. Furthermore, AI chatbots can assist in price comparison and negotiation, potentially leading to more timely pricing perceptions between customers. Understanding the effects of AI chatbots on these crucial aspects of e-commerce is essential for businesses seeking to help their customer service strategies.
Customer Service and User Compliance
AI-based chatbots have emerged as practical tools for enhancing customer service in e-commerce manufacturing. Nimbalkar & Berad (2021) highlight the increasing significance of AI applications in e-commerce, specifically in customer service. These chatbots can handle an expansive range of customer inquiries, from tracking orders and processing returns to providing product recommendations and resolving common issues. Their ability to offer instant responses and keep round the clock has significantly improved customer service efficiency, increasing customer satisfaction.
User compliance, defined as the range to which customers adhere to recommended conduct or follow through with purchase resolutions, is another vital aspect to consider in AI-based chatbots in e-commerce. Adam et al. (2020) discuss that these chatbots have the potential to influence user compliance. AI chatbots can encourage users to take desired actions, such as purchasing or signing up for a newsletter, by providing personalized recommendations, solving queries promptly, and assisting consumers throughout their journey. This capacity to guide and influence user performance has substantial associations with e-commerce businesses’ attempts to improve conversion rates and customer engagement.
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