Enhancing service quality in the insurance industry with AI-powered humanoid chatbots

Abstract

Purpose

This study aims to explore the potential of artificial intelligence with AI-powered humanoid Chatbots (AIPHC) as transformative tools to improve customer service quality in the insurance sector. The usability and efficiency of integrating advanced AI chatbots that can replicate human-like interactions in insurance services will be examined by taking into consideration customers’ technological readiness and chatbots’ anthropomorphism.

Design/methodology/approach

This empirical study analysed 688 customer responses collected through purposive sampling using structural equation modelling. With the help of SmartPLS 4.0, the study determines whether anthropomorphism, that is AIPHC system-specific and customer personality-specific dimensions, can influence the acceptance of AIPHC in the insurance sector.

Findings

The results show that the chatbot’s anthropomorphism positively influenced customers’ optimism and innovativeness but negatively impacted discomfort and security. Further optimism and innovativeness favourably impact AIPHC adoption. Insecurity had a significant negative impact, while discomfort was insignificant for AIPHC adoption.

Research limitations/implications

The study determines how people will react to AI-powered information systems. The results could help us better understand how the technological readiness of customers can be used in emphasizing the significance of system-specific theories like anthropomorphism in sectors like insurance, where customer interactions and delivery of quality services are important.

Practical implications

The results highlight chatbots’ potential to raise the quality of service, simplify processes and enhance customers’ overall experiences in the insurance sector. This study contributes to the continuing discussion on using AI technologies in customer service by considering the interplay between technology readiness and anthropomorphism. It also provides insightful information for insurance professionals and technology developers.

Social implications

Anthropomorphic humanoid chatbots can increase the availability, affordability and accessibility of essential services. They have the potential to increase users’ competence, autonomy and—possibly counterintuitively social relatedness.

Originality/value

This empirical research explores the link between anthropomorphism and technology readiness to enhance service quality provided by AI powered chatbots in the insurance sector.

Citation

Patil, K.P., Kulkarni, M.S. and Hudnurkar, M. (2024), "Enhancing service quality in the insurance industry with AI-powered humanoid chatbots", The TQM Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/TQM-11-2023-0354