Chatbot for SMEs in the Customer Service Sector: An Overview of the Literature

In an era where chatbots are increasingly indispensable across diverse sectors, especially in the domain of retail customer service, it is the amalgamation of artificial and emotional intelligence that holds the promise of redefining the customer support landscape. Businesses are strongly encouraged to tap into the potential of chatbots to enhance customer experiences and drive revenue growth in various domains, such as website-based FAQs and AI-powered chatbots. Despite the growing importance of chatbots, there remains a dearth of information regarding the factors that have initiated and moulded the evolution of customer service chatbots. This study aims to meticulously construct a more comprehensive understanding of the chatbot's evolutionary trajectory. To this end, we conducted a literature review to explore the antecedents and implications of customer service chatbot evolution, revealing a three-phase evolutionary timeline comprising basic rule-based chatbots, conversational chatbots, and generative chatbots. We also develop an integrative research framework to identify the factors that trigger and shape this evolution. Furthermore, we provide a roadmap for small and medium-sized enterprises (SMEs) looking to integrate the most optimal chatbots at various stages of their development. This study not only offers significant findings and discussions regarding the evolutionary trajectory of customer service chatbots but also highlights potential avenues for future research. Ultimately, it contributes to an enhanced understanding of the intricate interplay between AI and emotional intelligence, reshaping the future of customer service, particularly within the retail sector.