Abstract

Rapid advancement in Artificial Intelligence (AI) has transformed the dynamics of interaction between organizations and consumers. The rapid emergence and adoption of AI chatbots have ushered in a new era of convenient and efficient customer service. This paper addresses the gap of how Gen Z perceives chatbots as an alternative for service interaction, considering that this sample of the population is relatively more tech savvy and understands technology better. Utilizing semi-structured interviews for in-depth interaction, a thematic analysis reveals six key themes: trust and reliability, nature of interaction, perceived usefulness/ease of use, advantages, disadvantages, and areas of improvement. Gen Z generally views chatbots as limited in handling complex queries, highlighting the importance of human intervention and database expansion. The identified themes provide valuable insights for organizations to highlight strengths and address weaknesses in AI chatbots’ interactions with customers. The findings assist managers responsible for technology implementation in understanding customer pain points, fostering enhanced value for both users and organizations leveraging chatbots. This paper offers a comprehensive analysis of user experiences to illuminate the advantages and shortcomings of chatbots as service agents.