The effect of <scp>AI</scp> quality on customer experience and brand relationship

Abstract Although Artificial Intelligence (AI) has been gradually introduced to various industries, research on customer attitudes and behavior toward the use of AI is still in its infancy. Underpinned by flow theory and social identity theory, the current research aims to examine the influence of AI on the customer experience of flow, customer‐brand identification and customer advocacy. In addition, it is suggested that employee responsiveness moderates the effect of AI quality on flow and customer‐brand identification. A paper‐based survey was used to collect data from 350 guests from hotels in Vietnam. The findings indicate that AI information currency and system flexibility are significantly related to flow whereas AI system timeliness is the only dimension that significantly affects customer‐brand identification. Flow and customer‐brand identification significantly mediates the relationship between AI quality and customer advocacy. Besides, as the level of employee responsiveness decreases, the effect of AI system reliability on customer‐brand identification is more significant. This study extends the current body of knowledge in relation to the role of AI in the development of service experience and the relationship between customers and an organization. The findings make a compelling case for hotels to invest in AI tools in order to respond to customer expectations and improve their perception of hotel services.