Service Personalization Refined, Through Human and Artificial Intelligence Combined
(A2024-118367)

AUTHORS

Darius-Aurel Frank, Aarhus University; Violeta Stancu, Aarhus University, Denmark; Tobias Otterbring, University of Agder; Liisa Lähteenmäki, Aarhus University, Denmark; Klaus Grunert, Aarhus University, MAPP Centre, Department of Management

ABSTRACT

Artificial Intelligence (AI) technology has ushered in a transformative era, enabling unparalleled levels of personalization in consumer services. The widespread adoption of such AI-based services holds the potential to generate significant value and enhance well-being, as exemplified in the context of personalised nutrition services (PNS). The present research, drawing on a choice experiment and a latent class segmentation analysis, documents a paradox in AI service personalization. Despite its transformative potential, consumers devalue the AI's role, in comparison with other customer-centric design factors such as price, performance, effort and privacy. An exception arises when AI is merged with human advisors, garnering positive reception. These findings contribute to the AI adoption literature by quantifying adverse effects of AI-induced personalization, suggesting tailored approaches for mitigation and integrating AI with human advisors.