AI in Service Interactions
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Findings indicate that simple implementation of conversational tools is insufficient; rather, businesses must fundamentally enhance response accuracy, algorithmic personalization, and human-like interactivity to cultivate trust and foster long-term user engagement.
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This study evaluates the role of artificial intelligence (AI)-powered chatbots and virtual assistants in enhancing the online customer experience within the emerging e-commerce market of Palestine. Drawing upon technology adoption and customer experience frameworks, a comprehensive model was established incorporating Chatbot Quality, Personalization, Response Time, Customer Satisfaction, Perceived Value, Trust, and Brand Loyalty. Data were collected via a quantitative survey of 200 online e-commerce shoppers in Palestine. Descriptive statistics and Structural Equation Modeling (SEM) framework analysis were applied to investigate both the direct effects and mediating pathways. Preliminary analysis revealed moderate, neutral perceptions toward current chatbot deployments, with Perceived Value scoring the highest (M = 3.14) and Personalization scoring the lowest (M = 2.90). Crucially, the correlation and structural path analysis demonstrated exceptionally weak associations among variables (r ranging from -0.10 to 0.11), indicating a significant decoupling between existing AI chatbot designs and core customer experience metrics like trust and loyalty. The strongest observed relationship was between Satisfaction and Perceived Value (r = 0.11). These findings indicate that simple implementation of conversational tools is insufficient; rather, businesses must fundamentally enhance response accuracy, algorithmic personalization, and human-like interactivity to cultivate trust and foster long-term user engagement. Actionable design recommendations and strategic implementation guidelines tailored for developing markets are discussed.
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@article{Issa2026Role,
title = {The Role of AI Chatbots and Virtual Assistants in Enhancing Online Customer Experience: An Empirical Investigation in the Palestinian Context},
author = {Niveen Issa},
journal = {Journal of Economics Finance and Management Studies},
year = {2026},
doi = {10.47191/jefms/v9-i6-11},
url = {https://doi.org/10.47191/jefms/v9-i6-11}
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