How Smart Should a Service Robot Be?

Service robots are taking over the frontline. They can possess three types of artificial intelligence (AI): mechanical, thinking, and feeling AI. Although these intelligences determine how service help customers, not much is known about customers respond to different intelligence. This paper addresses this gap, builds on appraisal theory emotions, employs online experiments one field study demonstrate that have emotional responses Particularly, influence AI positive emotions becomes stronger as type more sophisticated. That is, relates strongly than mechanical Also, thinking increase spending loyalty intention through customers’ emotions. We also identify important contingency effects tiers: suitable for low-cost firms, whereas mainly benefits full-service providers. Remarkably, none directly related negative emotions; perceived robot autonomy an mediator in relationships. The findings yield concrete managerial guidance smart a should be by pinpointing right given market segment provider.