Algorithms vs. Humans: Reshaping Customer Service in the Technoservice Economy  


Prof. Kimmy CHAN, Professor
Department of Management, Marketing and Information Systems

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In an era of rapid digital transformation, the lines between technology and human labour are blurring, giving rise to a new frontier in customer service. This study delves into the impact of IoT-enabled algorithmic customer service systems (IACSs)—advanced systems utilising connected devices and smart algorithms to automate and enhance customer service—on a major business-to-business service firm. It reveals both the benefits and challenges of integrating IACSs into customer service operations.

On the one hand, these advanced systems are streamlining processes, enhancing efficiency, and boosting customer satisfaction. However, the research also uncovered a series of intriguing challenges:

  • Competing Bosses: Employees navigate a complex web of directives from both human supervisors and smart systems.  
     
  • Competing Employees: Human workers find themselves vying with technological counterparts for tasks and responsibilities.

  •  Dehumanization Effects: The ubiquity of intelligent automation can diminish the perceived value of employees and supervisors.

What implications does this have for the future of customer service, talent management, workplace culture, corporate productivity, and the balance between technology and the human touch? Read on to explore how digital transformation is reshaping the business landscape and driving efficiency.

#Technoservice-Profit Chain #Artificial Intelligence #Algorithmic Systems #Internet of things #Customer Service #Role Theory #Dehumanization #Competing Agents #The Future of Work