Infinite Potential of AI Chatbots: Enhancing User Experiences and Driving Business Transformation in E-commerce: Case of Palestinian E-Commerce

Abstract

In the much-evolving digital age landscape, it is difficult to overlook artificial intelligence's enormous role in people. This study entails an empirical examination of the impact of AI-powered chatbots on improving customer experience, customer satisfaction, and potential benefits in the digital era. This study was handled by the use of quantitative data collection methods through an online survey from 221 online users of AI-powered chatbots in Palestine. The collected data was then analyzed using descriptive statistics and structural equation modeling techniques.  According to the results, it was shown that service quality significantly influenced the intention to use chatbots by customers or users thus indirectly influencing the net benefits enjoyed by users in the digital era. Similarly, the service quality provided by AI-powered chatbots was found to significantly influence the intention to use them, thus indirectly influencing the net benefits of AI-powered chatbots. Additionally, service quality was found to influence user satisfaction with chatbots, which indirectly influenced the net benefits enjoyed by users/customers in the digital era. On the other hand, user satisfaction significantly and directly influenced the net benefits of AI-powered chatbots in the digital era. In this regard, this study significantly contributed to the AI-powered chatbot's body of knowledge in the Palestinian digital context by identifying the factors that influence the use of chatbots in the digital era from the users’ point of view with the capacity to help transform the Palestinian business landscape