CTAHR NEWS
9 November 2023

Artificial Intelligence-Powered Digital Solutions in the Fashion Industry

Artificial Intelligence-Powered Digital Solutions in the Fashion Industry

Dr. Ju-Young Kang (FDM)’s research article, titled “Artificial intelligence-powered digital solutions in the fashion industry: A mixed-methods study on AI-based customer services,” has been published in the International Journal of Fashion Design, Technology and Education (LINK). Using a sequential mixed-methods approach, this research examined customer experiences with and the uses and gratifications of AI chatbots as AI-based customer services and the influence of customers’ perceptions of service quality in AI-based customer services on favorable customer experiences, brand loyalty, and purchase loyalty. 

First, in the qualitative study (Study 1), this research found that (i) seeking an instant response, (ii) real-time information, (iii) fast navigation and transaction, and (iv) useful advice and suggestions were the uses and gratifications of AI chatbots. When it comes to cons of using AI chatbots offered by fashion brands, participants mentioned (i) the lack of detailed answers and options due to the repetitive pre-programmed responses, (ii) lack of sense of intimacy, (iii) difficulties understanding how to use the AI chatbot, and (iv) useless product recommendations from AI chatbots. 

Second, the findings of the quantitative study (Study 2) demonstrated that customers’ perceptions of empathy and automated responsiveness in AI chatbots were determinants of positive customer experiences with AI-based customer services. Interestingly, participants who have low levels of perception of automated responsiveness were likely to have a positive customer experience with AI-based customer services. Furthermore, reliability, assurance, and diagnosticity were not factors influencing a favorable customer experience with AI-based customer services. Favorable customer experiences with AI chatbots affected brand loyalty, which in turn influenced purchase loyalty. 

Lastly, the findings of this research can be used to create useful strategies as well as make investment decisions about AI-powered digital solutions in the fashion industry. Based on the empirical data of this research, fashion retailers could efficiently implement AI-based customer services in order to improve brand awareness and ultimately maximize profitability. -written by Ju-Young Kang

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