The Human Side of AI: Consumer Choices and Challenges in Chatbot Adoption

Abstract

The adoption of chatbots in the insurance industry is revolutionizing customer interactions by providing automated, efficient, and real-time support. This study examines consumer preferences, satisfaction levels, and challenges associated with chatbot usage in the insurance sector. Through a quantitative survey of 100 insurance consumers, the research identifies key factors influencing chatbot adoption, including ease of use, response time, effectiveness, and privacy concerns. The findings indicate that while policy inquiries, renewal reminders, and customer support are the most common chatbot-assisted services, consumers exhibit hesitation in using chatbots for fraud detection, premium payments, and claims processing. The regression analysis highlights that safety concerns, technical issues, and limited understanding significantly impact user satisfaction. The study concludes that while chatbots enhance efficiency and cost-effectiveness, they cannot entirely replace human interactions. A hybrid approach, integrating AI-driven automation with human assistance, is recommended to improve trust, engagement, and adoption in the insurance industry.