THE EFFECT OF AI-POWERED CUSTOMER SERVICE BOTS ON CONSUMER TRUST: EVIDENCE FROM PHILIPPINE E-COMMERCE STARTUPS
Abstract
The projected growth of the Philippine e-commerce market to USD 7 billion makes building digital trust through automated interfaces a critical imperative for local startups. This study examines the relationship between artificial intelligence–powered customer service bots and consumer trust in the Philippine startup ecosystem. Using a quantitative, descriptive-correlational research design, the researchers collected data from 400 active e-commerce consumers across major urban hubs, including Metro Manila, Cebu, and Davao. They applied Structural Equation Modeling to analyze the complex interplay among bot attributes, trust constructs, and behavioral intentions, guided by the Stimulus–Organism–Response framework and the Computers Are Social Actors paradigm. Results indicate that technical efficiency, specifically responsiveness and accuracy, is the primary driver of cognitive trust, while linguistic localization through Taglish proficiency significantly enhances perceived social presence.
Furthermore, consumer trust serves as a potent mediator, accounting for 70% of the total effect on purchase intention; however, the "Transparency Paradox" suggests that inadequate AI disclosure significantly erodes trust regardless of the bot's helpfulness. While Generation Z exhibits high adoption rates, they also demonstrate the highest churn probability (58%) following service failures. These findings underscore the need for cultural-linguistic alignment and a "human-in-the-loop" strategy to sustain long-term consumer loyalty in emerging digital economies.
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