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Complete

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Livestream technology is transforming consumers’ online shopping experience. This research addresses how livestream selling platforms mitigates the tension between streamers’ constrained service capacity and individual service demands with AI assistants. We conduct a large-scale field experiment wherein the consumers in the treatment group have access to an AI assistant that predicts consumers’ potential needs and provides individualized services, while the consumers in the control group do not have access to such an AI assistant. We find that the introduction of the AI assistant increases sales by 2.61% and reduces product returns by 62.86%. Our models on multiple-stage purchase decision-making reveal that an AI assistant increases the duration of the awareness and consideration stages, improves the probability of placing an order in the evaluation stage and reduces the likelihood of product returns. Further, our analyses reveal that interacting with the AI assistant also reduces consumers’ expressions of affection and positive emotions.

Paper Number

1067

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Aug 10th, 12:00 AM

The Role of AI Assistants in Online Shopping Platforms: Evidence from Livestream Selling

Livestream technology is transforming consumers’ online shopping experience. This research addresses how livestream selling platforms mitigates the tension between streamers’ constrained service capacity and individual service demands with AI assistants. We conduct a large-scale field experiment wherein the consumers in the treatment group have access to an AI assistant that predicts consumers’ potential needs and provides individualized services, while the consumers in the control group do not have access to such an AI assistant. We find that the introduction of the AI assistant increases sales by 2.61% and reduces product returns by 62.86%. Our models on multiple-stage purchase decision-making reveal that an AI assistant increases the duration of the awareness and consideration stages, improves the probability of placing an order in the evaluation stage and reduces the likelihood of product returns. Further, our analyses reveal that interacting with the AI assistant also reduces consumers’ expressions of affection and positive emotions.

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