Do customers exhibit engagement behaviors in AI environments? The role of psychological benefits and technology readiness

Although service environments have become increasingly smart due to the infusion of artificial intelligence (AI) technology, little research has examined AI environments and their influence on customer behaviors. This research investigated this issue in the context of services. We explored the direct effects of AI environments (compared with the traditional environment) on customer engagement, the role of customer technology readiness (TR) as a moderator, and ideal self-congruity and trust as mediators. Three studies were designed, and data from situational experiments were analyzed. The moderated mediation analysis suggested that customer engagement behaviors (CEBs) occur when customers with higher TR-optimism perceive ideal self-congruity in a conspicuous AI environment (vs. a conspicuous traditional environment). Additionally, customers with higher TR-optimism are more likely to have trust and perform CEBs for lower anthropomorphism in a conspicuous AI environment. The research findings make theoretical and practical contributions to technology applications, service environments, and customer relationship management.