Generative AI Adoption and Customer Engagement within the Service Industry in Kenya

Abstract

Purpose: The purpose of the study was to determine the impact of generative AI adoption on customer engagement within the service industry in Kenya. Generative artificial intelligence (AI) allows machines to carry out tasks that would require human intelligence. Customers have become more enlightened and now require much more engagement with the service industry. It is quite the norm for these customers to appreciate promotions in a manner that targets them directly. With generative artificial intelligence, the service industry can engage customers directly. The entities in the industry need this engagement with customers so as to increase their interactions and hence grow their revenue.

Methodology: The study deployed a review of literature as the research design to allow for analysis that provided a link between independent and dependent variables. Inclusion and exclusion criteria were developed to search on daystar MyLOFT collection. Recent study articles were synthesized to explain how generative AI can impact customer engagement outcomes thus positively impact the service industry in Kenya. 1,120 studies were screened for relevance and 7 studies selected for analysis.

Findings: The study found that effective customer engagement can be achieved using generative artificial intelligence technologies. The findings provided practical insights for the service industry in Kenya seeking to improve customer engagement and provided a solution that this can be done through available technologies.

Unique Contribution to Theory, Practice and Policy: The study was anchored on Unified Theory of Acceptance and Use of Technology, Stakeholder Theory and Social Exchange Theory. UTAUT was extensively discussed to indicate the factors that influence the adoption of technology and hence guide the discussions surrounding generative AI adoption. Stakeholder theory discusses the impact of customer engagement on the service industry and how entities in the industry can ensure these critical stakeholders are adequately engaged through deploying AI. Social exchange theory discusses that customers will engage businesses that provide them with value and indeed this engagement needs to be beneficial and at a cost that is not higher than the benefits. With the increased developments in AI, there are solutions to ensure reduced cost to companies and increased efficiency in targeting customers. Managers should thus increase the utilization of AI in their operations with a surge in customer engagement efforts. Where policy makers are concerned, an enabling environment for enterprises to access and integrate generative AI into their functions is quite critical. This will boost the performance of these entities and indeed ultimately impact the economy of the country.