Faculty & Research Faculty & Research

Zoom link: https://hec-fr.zoom.us/j/99416892584

Andrea Ordanini
Professor of Marketing & Service Analytics - BNP Paribas Endowed Chair - Bocconi University - Italy

Title:

“When AI Assists at the Frontline: External and Internal Marketing Effects in the Context of Banking Mortgages.”

Abstract:

While Artificial intelligence (AI) increasingly assists frontline employees (FLEs) in their tasks, its implications remain uncertain. Against this background, this research focuses on examining the effects of AI assistance on both external (customer satisfaction, market performance) and internal (employee satisfaction) marketing outcomes. Findings from quasi-experimental evidence in a banking context, reveal that AI-assisted FLEs adopt more conservative behaviors, resulting in a 5% decrease in mortgage approvals and a 7% reduction in default payments, but at the cost of a 10% decline in customer satisfaction. A follow-up textual analysis and survey provide insights into the underlying process, suggesting that AI-generated solutions tend to be rigid and less open to alternative possibilities, which in turn reduces FLEs’ satisfaction. Controlled experiments test and further qualify this process evidence, showing that AI’s standardized outputs limit employees’ perceived job autonomy and satisfaction, regardless of their awareness of AI involvement. This research advances the AI marketing literature by showing that AI’s role at the frontline is not inherently supportive but must be carefully aligned with the characteristics of frontline nonroutine tasks. Its insights can help marketers harness the potential of AI-assisted frontline work while mitigating unintended downstream effects on employees and customers alike.