Hospitality News & Business Insights by EHL

Using AI-equipped service robots: the customer point of view

Written by Dr Reza Etemad-Sajadi | Sep 19, 2024 4:00:00 PM

Artificial Intelligence has been widely adopted across various industries, bringing transformative benefits and driving innovation in business operations. However, from the point of view of customers, the advantages of service robots equipped with generative AI come with caveats.

Why are people either eager or reluctant to use service robots featuring generative AI? We found that there are two reasons: 1) people seek personal growth and enhanced efficiency (promotion focus) while being 2) concerned about safety and security (prevention focus). Understanding customer motivations behind their intention to use AI-enabled service robots is crucial from both theoretical and managerial perspectives to ensure the success of AI-based systems.

For our study, we collected data using Prolific, an online platform that connects researchers with study participants for scientific research. Participants watched a video of the robot "Pepper" in action in the lobby of a service company. It was specifically mentioned that ChatGPT was integrated into these robots. Respondents then answered questions about their perception of the robots based on the video.

 

Human & robot relationship: More interaction leads to greater use

"Usefulness" emerged as the most critical factor influencing “intention to use”. When the service robot demonstrated high practicality and utility in assisting with tasks or providing information, users' intention to use the technology increased substantially. In other words, people will use robots when they’re useful.

Through our study, we also found a strong connection between "social presence" and "emotional appeal". As the robot's ability to convey a sense of social presence improved, its emotional appeal also grew stronger. In other words, social skills help robots connect with humans on an emotional level. This correlation emphasizes the importance of human-like social capacities in enhancing the overall emotional appeal of service robots, potentially facilitating their integration into various aspects of daily life. These findings underscore the pivotal role of the user experience in shaping the future of AI-driven robotics. If robots cannot interact socially with their users, there will be no emotional response. And people won’t use robots if there is no emotional connection.

Figure 1 - Scale from 1 (totally disagree) to 7 (totally agree).

Figure 2 - Scale from 1 (totally disagree) to 7 (totally agree).

Mistrust creates resistance to use robots in hospitality

There is also a significant connection between "trust" and "resistance" among users. When individuals perceived a lack of trust in the robot's performance, their resistance to adopting the technology grew markedly. Furthermore, "data protection" emerged as a critical determinant of resistance. Users who were concerned about the privacy and security of their personal information when interacting with the robot were more likely to be reluctant to use robots.

The notion of "replacement" played also a substantial role in influencing resistance. Users who perceived the service robot as a potential replacement for human interaction or employment were more reluctant to integrate it into their lives. Among the variables impacting resistance, “trust” was the most significant. Together, "trust," “data protection,” and “replacement” explain around 50% of the “resistance.” These findings highlight the multifaceted nature of resistance and underscore the importance of addressing trust, data protection and fears about being replaced by robots when introducing service robots equipped with AI capabilities.

Figure 3 - Scale from 1 (totally disagree) to 7 (totally agree).

Figure 4 - Scale from 1 (Totally Disagree) to 7 (Totally Agree).

What can industry players take away from our findings?

Our results show that service companies must consider both promotional and preventive standpoints in order to ensure successful implementation of AI robots. Consumers weigh the pros and cons of using robots, and it appears that perceived usefulness has the largest impact on the intent to use the technology and, thus, pursuing a promotion-focused path by having marketing materials stress the potential benefits for the customer appears to be a wise course of action.

However, organizations also need a prevention-focused strategy to address resistance that comes from trust, data protection and replacement concerns, since these factors do have a significant impact on intention to use. Many potential applications of service robots with generative AI are almost ready to be rolled out; however, in order for them to be successful, companies need to ensure that there are no issues with the technology that are confusing or ambiguous as this could diminish the perception of the potential benefits. We also observed that users who had prior experience with ChatGPT and/or service robots tend to evaluate these technologies more favorably in terms of their usefulness and emotional appeal. Indeed, having already interacted with these technologies allows users to connect on an emotional level, perceiving the robot's responses as more empathetic and engaging, thus enhancing their overall emotional appeal.

In terms of conclusion, one can claim that to successfully implement AI-enabled service robots, companies must emphasize their practical benefits and emotional appeal while addressing trust, data protection and job replacement concerns.