The Impact of AI Adoption on Customer Engagement: A Generation Z Perspective in Sarawak
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Universiti Malaysia Sarawak (UNIMAS)
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This study examines the impact of Artificial Intelligence (AI) adoption on customer engagement among Gen Z consumers in Sarawak. The research explores the role of AI-driven strategies like dynamic pricing, individualised marketing, and automated customer service platforms in shaping customer engagement among Gen Z. A cross-sectional quantitative method is employed, and data are collected through 404 participants using an online questionnaire. The study utilises the Technology Acceptance Model (TAM) and Customer Engagement Theory (CET) to analyse the relationship between AI adoption and customer engagement. All three AI strategies significantly enhance customer engagement, with dynamic pricing and personalised marketing showing strong relationships, while automated customer service platforms are especially well-received. Statistical findings of correlation and regression analyses confirm hypotheses that AI plans enhance customer satisfaction, loyalty, and brand support. The research supports that Gen Z in Sarawak values personalisation, fairness, and prompt service, emphasising the importance of AI in existing customer interaction mechanisms. Theoretical implications of the study reinforce TAM and CET, suggesting that perceived ease of use and perceived usefulness of AI technologies drive consumer participation. Practical business advice for Sarawak companies emphasises the need for customised, flexible, and transparent AI solutions to accommodate Gen Z's preferences. Limitations include the cross-sectional design and regional focus, with suggestions for future research to include longitudinal studies and broader geographic coverage.