A consumer acceptance model in the artificial intelligence era

Purpose This paper identifies consumer acceptance criteria of artificial intelligence (AI)-enabled products and services in the business. We first investigate the existing three models. They are the technology acceptance model (TAM), the unified theory of acceptance and use of technology (UTAUT) and the consumer acceptance of technology (CAT). We then discuss the applicability of these three models for AI-enabled products and services. Finally, we outline the shortcomings of the models and propose an AI-enabled product and service acceptance model (AIEPSAM). We also validate the proposed AIEPSAM model with empirical results using primary survey data. Design/methodology/approach To understand the customer’s point of view on AI applications in products and services, we identify some critical factors and present a conceptual framework of consumers' acceptance criteria based on existing literature, prior research and prominent technology management theories. Then, the study broadens the horizon beyond established principles associated with technology acceptance to accommodate AI-specific factors/variables like data privacy, explainability and apparent opacity of algorithms. In this paper, we propose an AIEPSAM and validate that model with primary survey data. Findings We argue that although TAM, UTAUT and CAT models are generally applicable to explain consumers' attitudes towards technology, these models alone are insufficient to encompass the entire spectrum of AI-related issues that must not be ignored. The proposed model, namely AIEPSAM, accommodates the limitations of the existing models and modifies the CAT model to make it suitable for the acceptance of AI technology. Originality/value We attempt to articulate the consumer acceptance criteria of AI-enabled products and services and discover useful insights, leading to the critical examination of TAM, UTAUT and CAT models and formulating AIEPSAM with validation through primary survey data. This study is not to criticize the TAM and other technology acceptance models but to incorporate AI-specific factors into those models. Through this study, we propose the required modifications in the existing technology acceptance models considering the AI-specific additional factors. The AIEPSAM will assist companies in building AI-enabled products and services and better understanding the technology emergence (TE) and technology opportunities (TO).