How AI chatbots have reshaped the frontline interface in China: examining the role of sales-service ambidexterity and the personalization-privacy paradox

Purpose This study serves two purposes: (1) to evaluate the effects of organizational ambidexterity by examining how the balanced and the combined sales-service configurations of chatbots differ in their abilities to enhance customer experience and patronage and (2) to apply information boundary theory to assess the contingent role that chatbot sales-service ambidexterity can play in adapting to customers' personalization-privacy paradox. Design/methodology/approach An online survey of artificial intelligence chatbots users was conducted, and a mixed-methods research design involving response surface analysis and polynomial regression was adopted to address the research aim. Findings The results of polynomial regressions on survey data from 507 online customers indicated that as the benefits of personalization decreased and the risk to privacy increased, the inherently negative (positive) effects of imbalanced (combined) chatbots' sales-service ambidexterity had an increasing (decreasing) influence on customer experience. Furthermore, customer experience fully mediated the association of chatbots' sales-service ambidexterity with customer patronage. Originality/value First, this study enriches the literature on frontline ambidexterity and extends it to the setting of human-machine interaction. Second, the study contributes to the literature on the personalization-privacy paradox by demonstrating the importance of frontline ambidexterity for adapting to customer concerns. Third, the study examines the conduit between artificial intelligence (AI) chatbots' ambidexterity and sales performance, thereby helping to reconcile the previously inconsistent evidence regarding this relationship.