Empathic accuracy in artificial intelligence service recovery

Purpose Artificial intelligence (AI) agents have been increasingly applied in the tourism and hospitality industry. However, AI service failure is inevitable. Thus, AI service recovery merits empirical investigation. This study aims to explore how AI empathic accuracy affects customers' satisfaction in the context of AI service recovery.Design/methodology/approach A moderated mediation model was presented to describe the effect of empathic accuracy on customer satisfaction via four scenario-based experiments.Findings The results reveal the positive impact of AI empathic accuracy on customer satisfaction and the mediating effects of perceived agency and perceived experience. Moreover, anthropomorphism moderates the empathic accuracy effect.Originality/value This paper expanded AI service studies by exploring the significance of empathic accuracy in customer recovery satisfaction. The results provide a novel theoretical viewpoint on retaining customers following AI service failure.