Service recovery by AI or human agents: Do failure and strategy context matter?

What is it about?

AI-provided services are increasingly used also for critical moments of truths such as service recovery. We examine consumer preferences for AI versus human agents, service recovery and find that consumers prefer AI agents when a failure is caused by the consumer and when the recovery involves an explanation or compensation. Human agents are preferred when a failure is caused by the firm and when the recovery involves an apology or fixing the problem.

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