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Optimizing AI strategies in e-commerce customer service: An agent-based simulation

Author

Listed:
  • Yali Zhang

    (Northwestern Polytechnical University)

  • Zhenbin Ding

    (Northwestern Polytechnical University
    The Logistics Institute-Asia Pacific, National University of Singapore)

  • Jun Sun

    (University of Texas Rio Grande Valley)

  • Xingfang Zhao

    (Northwestern Polytechnical University)

  • Xu Hu

    (North China Electric Power University – Baoding Campus)

  • Zhaojun Yang

    (Xidian University)

Abstract

The growing integration of chatbots in e-commerce customer service presents opportunities and challenges for online retailers in shaping effective artificial intelligence (AI) strategies. This study evaluates human-only, AI-only, and human–AI collaboration strategies using an agent-based simulation model across varying levels of task complexity, service volume, and product margin. Results show that the AI-only strategy excels in low-volume, simple tasks due to its cost-effectiveness, while the human–AI collaboration strategy proves superior in managing high-volume or complex inquiries by scaling human involvement to meet demand. For high-margin products, this collaborative approach delivers the best service, whereas the AI-only strategy is optimal for low-margin items. Enhancing chatbots’ anthropomorphic qualities could further improve service performance, but only if technological advancements are sufficient. The findings provide actionable insights for optimizing AI deployment and fostering adaptive customer service.

Suggested Citation

  • Yali Zhang & Zhenbin Ding & Jun Sun & Xingfang Zhao & Xu Hu & Zhaojun Yang, 2025. "Optimizing AI strategies in e-commerce customer service: An agent-based simulation," Electronic Markets, Springer;IIM University of St. Gallen, vol. 35(1), pages 1-22, December.
    • Handle: RePEc:spr:elmark:v:35:y:2025:i:1:d:10.1007_s12525-025-00821-8
    DOI: 10.1007/s12525-025-00821-8
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    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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