Are AI chatbots a cure-all? The relative effectiveness of chatbot ambidexterity in crafting hedonic and cognitive smart experiences

Whether AI chatbots improve smart experiences and generate revenue is an under-researched topic. This study fills this research gap by investigating and comparing the effects of the full range of chatbot ambidexterity on smart experiences. Using empirical data from 1,026 customers, the results indicate that chatbot ambidexterity is not a cure-all. Only efficiency-flexibility ambidexterity benefits smart experiences and customer patronage, while service-sales ambidexterity is detrimental to the creation of smart experiences. Furthermore, high service-low sales (vs low service-high sales) ambidexterity has a stronger impact on hedonic smart experiences but a weaker influence on cognitive smart experiences. Low efficiency-high flexibility and low existing-high new product selling ambidexterity outperform high efficiency-low flexibility and high existing-low new product selling ambidexterity, respectively, in crafting either hedonic or cognitive smart experiences. The results also reveal that hedonic smart experiences have a stronger impact on customer patronage than cognitive smart experiences. This study contributes to the literature on smart experiences and chatbot ambidexterity and provides fruitful and meaningful guidance for service providers regarding the deployment of AI chatbots in the frontline interface.