The effects of chatbot usage by businesses on online customer service satisfaction in South Africa.

Abstract

The fourth industrial revolution has introduced various technological innovations, with artificial intelligence (AI) at the core in influencing and transforming how South African businesses operate in customer service. There has been a rapid increase in the adoption of AI-driven tools, and chatbots have been no exception. This study examines the impact of chatbot usage by businesses on online customer service satisfaction in South Africa, providing insight into the relationship between chatbot adoption and customer satisfaction, grounded in the Technology Acceptance Model (TAM) as the theoretical framework, extending research into the South African customer service context outside the fintech, health and telecommunication industries, by exploring how the TAM constructs, such as perceived usefulness and ease of use of chatbots, influence user satisfaction. Data was collected from South African users who had interacted with chatbots within 12 months of the study. The key findings were 80% of users found chatbots user-friendly, 77% reported that chatbots were helpful with their customer service queries, and 58% experienced improved customer service through chatbots. In contrast, only 22% of users prefer chatbots over live human agents. Highlighting the preference for human agents for complex tasks and scenarios. The results highlight the opportunities and limitations of chatbot technologies in customer service. Although chatbots offer 24/7 access and efficiency, they fall short with complex customer queries. To address the gaps, the study proposes an 8-stage chatbot implementation framework covering alignment, capability assessment, user interface design, integration, handover models, deployment, transparency, and continuous improvement, guiding businesses in automation with customer expectations in South Africa’s evolving digital landscape.