Balanced level of humanised AI design in chatbots enhances trust: Study

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A balanced level of humanised Artificial Intelligence (AI) design in chatbots enhances customer comfort and trust, while excessive human resemblance can cause discomfort, a new research by the Goa Institute of Management (GIM) has found.

The research has studied customer behaviour towards Artificial Intelligence enabled service agents, including as chatbots, digital assistants and service robots.

Conducted in collaboration with researchers from Cochin University of Science and Technology (CUSAT), Kerala, the findings of this research have been published in the International journal of Consumer Studies.

With AI reshaping the Frontline Service Encounters (FLSE), the study aims to explore "how do consumers perceive and interact with AI in every day service interactions".

For the same, the research team consolidated findings from 157 peer-reviewed articles to identify the key drivers, theories, and outcomes shaping consumer and AI interactions.

The research team reviewed 44 top-tier journals and various domains of study such as hospitality, retail, banking, and healthcare to gather global insights into how AI adoption patterns differ across contexts and cultures.

"Our findings show that when AI agents are designed with the right balance of humanisation, competence, and empathy, they can foster stronger consumer trust and engagement," Manu C, Assistant Professor, GIM, told PTI.

"The research found that a balanced level of humanised AI design enhances customer comfort and trust, while excessive human resemblance can cause discomfort. The AI interaction design, including appearance, empathy and interaction style strongly influence customer trust, engagement and satisfaction," he added.

The study proposes an integrated framework that consolidates scattered findings into a unified model explaining how AI agent design, consumer traits, and service contexts jointly affect customer outcomes.

Based on the key findings, the study charts a detailed roadmap for advancing future research in AI and consumer behaviour. It proposes an integrated framework identifying key mediators, and moderators that shape consumer responses to AI service agents.

"This model advances understanding of how AI design features, such as human-likeness, empathy, reliability, and consumer traits jointly influence trust, acceptance, and satisfaction," he said.

Additionally, the research has also identified critical research gaps such as cross-cultural variations in AI perception, the role of social identity and trust in AI acceptance, and the ethical boundaries of AI humanisation.

"The insights of this research have direct applications for service managers, designers, and marketers seeking to deploy AI responsibly in customer-facing roles. The research guides strategic decisions in industries, including hospitality, banking, and retail, where AI is becoming a core element of customer engagement," the research added.