Guest article by Jochen Wirtz, Werner Kunz, Stefanie Paluch, and Valentina Pitardi.
The Rise of Service Robots
As technology continues to advance, service robots are increasingly becoming integral to the service sector. These robots are designed to interact with customers, employees, and citizens, and are transforming the service sector in unprecedented ways. This blog post explores the emerging role of service robots to reflect on their impact and future potential.
Service robots, defined as “system-based autonomous and adaptable interfaces that interact, communicate, and deliver service to an organization’s customers” (Wirtz et al., 2018), are deployed across hospitality, healthcare, and retail sectors. The growing sophistication of these robots enables them to perform tasks ranging from simple customer inquiries to complex caregiving roles.
In the 2022 movie, M3GAN an AI-powered robot designed to be a child’s best friend and caregiver. However, as M3GAN’s AI becomes more autonomous, she begins to take her protective role too far, leading to dangerous consequences. This film underscores the potential risks of advanced AI in caregiving roles, highlighting the importance of ethical considerations in designing and deploying service robots.
Recent studies indicate the growing adoption of service robots in customer-facing roles. For instance, Tussyadiah and Park (2018) found that customers generally respond positively to service robots, particularly when these robots deliver efficient and accurate services. However, the extent to which robots can replicate the nuances of human interaction remains a subject of ongoing research (Belanche et al., 2020).
Impact on Customers
The introduction of service robots is poised to significantly alter customer service dynamics. One of the primary benefits is increased service efficiency. Robots can operate continuously, providing consistent service without the limitations of human fatigue or error. This can enhance customer satisfaction, particularly in contexts where speed and accuracy are crucial (Huang & Rust, 2021). Sectors such as hospitality and retail are likely to benefit greatly, as robots can automate repetitive tasks like check-in/check-out processes or shelf stocking, leading to shorter wait times and improved service quality.
In the tourism industry, where service quality and customer comfort are paramount, service robots can significantly enhance customer satisfaction. Research by Pitardi et al. (2022) highlights how service robots can influence customer emotions during potentially embarrassing service encounters. For example, situations such as returning a dish in a restaurant or reporting an issue with a hotel room can make customers feel uncomfortable or judged by human staff. Pitardi et al. found that service robots, due to their perceived lack of agency and emotion, reduce customers’ concerns about how they are perceived by others. This leads to more comfortable interactions, reducing emotional stress and resulting in higher customer satisfaction.
Looking ahead, Pitardi et al. (2024) suggest that service robots will increasingly be used in situations where customers may experience discomfort, such as healthcare settings or high-end retail. As these robots become more advanced, they may offer personalized, non-judgmental interactions, which could shift customer loyalty and improve word-of-mouth marketing for businesses.
However, the shift from human to robot interaction also presents challenges. The lack of human empathy and the potential for reduced personalized service are significant concerns. Wirtz et al. (2018) suggest that while robots can handle routine tasks effectively, they may struggle with more complex, emotion-driven interactions. This raises important questions about the appropriate balance between robotic and human service, particularly in sectors like healthcare and hospitality, where emotional intelligence is crucial.
Impact on Employees
The deployment of service robots has significant implications for employees, particularly in terms of job roles and skill requirements. On one hand, robots can take over repetitive, low-skilled tasks, allowing employees to focus on more complex and rewarding activities. This can lead to job enrichment and greater job satisfaction (Paluch et al. 2022). Moreover, the ability of service robots to operate 24/7 could lead to a shift in customer expectations, particularly in industries such as hospitality and retail, where robots could be available around the clock.
On the other hand, there are concerns about job displacement, particularly for low-skilled workers. As robots become more capable, there is a risk that certain jobs may become obsolete. This potential for disruption necessitates a reevaluation of workforce training and development strategies to ensure that employees are equipped with the skills needed to thrive in a more automated service environment (Frey & Osborne, 2017).
Generative AI and advanced robotics could also contribute to either exacerbating or alleviating socioeconomic inequalities, depending on how these technologies are implemented (Capraro et al., 2024). While AI has the potential to increase productivity and create new jobs, the benefits are likely to be unevenly distributed, potentially leading to greater disparities in job opportunities across different demographics and regions. This calls for careful consideration in policymaking and corporate practices to ensure that the adoption of AI and robotics contributes to reducing inequalities rather than widening them.
Impact on Citizens and Society
Beyond the direct impact on customers and employees, service robots also influence society at large. As robots become more integrated into public spaces, they contribute to the shaping of social norms and expectations around service delivery. For example, in healthcare, robots like the PARO therapeutic robot are used to provide companionship and support to elderly patients, potentially reducing the burden on human caregivers (Sharkey & Sharkey, 2012).
The broader societal implications of widespread robot deployment include the need to address the digital divide and ensure that all segments of society benefit from technological advancements. As service robots become more prevalent, it is crucial to consider how these technologies might impact social equity. For instance, access to robot-assisted services could be unevenly distributed, favoring more affluent areas and populations while leaving underprivileged communities behind.
As noted by Capraro et al. (2024), the rise of advanced AI technologies, including those used in service robots, presents both opportunities and challenges for addressing socioeconomic inequalities. Policymakers must take proactive steps to harness AI’s potential for social good while mitigating risks such as data misuse, surveillance, and the deepening of existing inequalities. Effective regulation and responsible corporate behavior will be key to ensuring that AI-driven service robots contribute positively to society as a whole.
Furthermore, companies must embrace Corporate Digital Responsibility (CDR) to ensure the ethical and responsible use of digital technologies, including robotics. Wirtz et al. (2023) emphasize that CDR involves taking responsibility for the ethical and social impacts of digital technologies, ensuring transparency, fairness, and respect for privacy. In the context of service robots, this means companies must be vigilant in protecting customer data, preventing misuse, and ensuring that the deployment of robots does not exacerbate social inequalities. By incorporating CDR principles, companies can foster trust and ensure that the benefits of service robots are shared equitably across society.
Human-Robot Interaction Dynamics
The psychological aspects of human-robot interaction are complex and warrant deeper exploration. While service robots can enhance efficiency, their increasing presence in customer interactions raises questions about the long-term effects on human behavior and emotional well-being. For example, frequent interactions with robots could lead to a reduction in human-to-human contact, potentially diminishing social skills and emotional intelligence over time.
Moreover, customers may develop a preference for interacting with robots in situations where they feel judged or uncomfortable with human employees. While this could reduce stress in specific contexts, it may also contribute to a growing detachment from human interaction, which is essential for building empathy and social cohesion.
Future research should focus on understanding these dynamics and developing strategies to mitigate any negative impacts. This includes exploring how service robots can be designed to complement rather than replace human interactions, particularly in sectors where emotional intelligence is critical.
Despite the potential negative impact, collaboration between humans and robots can result in increased productivity and efficiency. For example, Le et al. (2024) demonstrated that when human-robot collaboration is properly coordinated and the team works towards a shared goal, it can enhance process fluency and team cohesion, ultimately affecting customer satisfaction. There is a need to gain a better understanding of how to plan and support such collaborations in order to make service companies more competitive.
Looking Ahead: The Future of Service Robots
As we look into the future, it is clear that service robots will play an increasingly prominent role in service interactions. To maximize their potential, it is crucial to continue exploring how these technologies can complement, rather than replace, human service. This involves not only advancing the technical capabilities of robots but also understanding the psychological and social dynamics of human-robot interaction.
Future research should focus on developing hybrid service models that leverage the strengths of both robots and humans. For instance, robots could handle routine tasks while humans provide the emotional intelligence and problem-solving skills that are still beyond the reach of current robotic technology. This approach could lead to a more balanced and effective service delivery model, benefiting customers, employees, and society as a whole. The integration of service robots into service interactions is an exciting development that promises to reshape the landscape of service delivery. While the benefits in terms of efficiency and consistency are clear, it is essential to address the challenges related to personalization, job displacement, social equity, and corporate digital responsibility. By adopting a forward-looking perspective and continuing to explore the interplay between technology and human service, we can ensure that the rise of service robots leads to positive outcomes for all stakeholders.
Key Learnings for Service Researchers:
- Human-Robot Interaction Dynamics: Service researchers should focus on the psychological and social impacts of service robots, particularly on how frequent interactions with robots may affect customers’ emotional well-being and social skills. Understanding these dynamics is crucial for designing robots that complement rather than replace human interaction, especially in emotionally sensitive service sectors.
- Ethical Considerations in AI Deployment: Researchers must delve deeper into the ethical challenges posed by AI and service robots, such as bias in algorithms, data privacy concerns, and the broader societal impacts. Exploring these areas will be essential for developing frameworks that guide the responsible use of service robots in various industries.
- Hybrid Service Models: There is a need to explore and develop hybrid service models that effectively combine the strengths of both human employees and robots. Research should focus on identifying the optimal balance where robots handle routine tasks while humans provide the emotional intelligence and problem-solving skills necessary for complex interactions.
Key Learnings for Service Managers:
- Enhance Customer Experience with Service Robots: Managers should leverage the non-judgmental and efficient nature of service robots to improve customer satisfaction, particularly in situations where customers may feel uncomfortable interacting with human staff. This approach can lead to better customer loyalty and positive word-of-mouth, particularly in industries like hospitality and healthcare.
- Strategic Workforce Development: Managers should proactively address the potential for job displacement by investing in upskilling and reskilling programs. Preparing employees for new roles that involve managing and maintaining service robots will be key to navigating the transition to a more automated service environment.
- Adopt Robust Corporate Digital Responsibility (CDR) Practices: Service managers must prioritize CDR by ensuring the ethical and transparent use of service robots. This includes safeguarding customer data, preventing misuse, and implementing practices that do not exacerbate social inequalities. Adopting CDR principles will be crucial for building customer trust and ensuring long-term success.
Jochen Wirtz
Vice Dean MBA Programmes and Professor of Marketing
NUS Business School, National University of Singapore
Werner Kunz
Professor of Marketing and Director of the Digital Media Lab
University of Massachusetts (UMass) Boston
Stefanie Paluch
Professor for Service and Technology Marketing, RWTH Aachen University
Senior Fellow at Centre for Relationship Marketing and Service Management, Hanken School of Economics, Helsinki, Finland
Valentina Pitardi
Lecturer in Marketing
University of Surrey, UK
Illustration generated in Bing.
References
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