Empowering AI Companions for Enhanced Relationship Marketing.

Embedded with artificial empathy, artificial intelligence (AI) companions (ACs) can create, communicate, and deliver value to customers. This article analyzes current and emerging ACs in order to explore AI's role in transforming customer journeys and establishing long-lasting customer relationships. It also identifies existing business challenges in developing user-AI companionship and offers a remedial strategy matrix. Purely functional or emotional capabilities lead to interest in the companion plummeting with time. The findings reveal the need to design holistic ACs with a hybrid of functional, emotional, and conversational capabilities to mitigate the uncanny valley problem. [ABSTRACT FROM AUTHOR]

Copyright of California Management Review is the property of California Management Review and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)