TLDR Tech / Marketing
When AI chatbots boost vs hurt sales
AI chatbots work best when shoppers need help comparing products or sorting through large assortments. Across four experiments with 1,339 people, chatbot recommendations increased purchase intention by 44.7% for products that are hard to evaluate, such as apparel that varies by fit, size, and style. Chatbots also increased engagement for simple products that have many options, but reduced purchase intention for simple products that have small assortments because they added unnecessary friction. Use chatbots where they simplify complex decisions and organize choices instead of adding another step to an easy purchase.
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