MAPUA MALAYAN COLLEGES MINDANAO

Quantifying the Impact of Artificial Intelligence

on Customer Satisfaction: A Comparative Study

Maria Rodriguez
Michelle Lee
Alejandro Santos
Benedict Cruz
Gina Divinagracia
Sofia Tanaka

Science, Technology, Engineering, and Mathematics

Thesis Adviser
MS. JUVYLANE MANGLICMOT
High School Department

December 2022
Quantifying the Impact of Artificial Intelligence
on Customer Satisfaction: A Comparative Study

by

Maria Rodriguez
Michelle Lee
Alejandro Santos
Benedict Cruz
Gina Divinagracia
Sofia Tanaka

A Quantitative Research Submitted to the High School Department

in Partial Fulfillment of the Requirements for

Practical Research 2 (APP5)

Mapúa Malayan Colleges Mindanao

General Douglas MacArthur Highway,
Matina, Davao City

December 2022
 APPROVAL SHEET

This research paper entitled, "Quantifying the Impact of Artificial Intelligence on

Customer Satisfaction: A Comparative Study," prepared and submitted by Maria
Rodriguez, Michelle Lee, Alejandro Santos, Benedict Cruz, Gina Divinagracia, and
Sofia Tanaka, in partial fulfillment of the requirements for the subject APP5: Practical
Research 2 (Quantitative Research), has been examined and is, hereby, recommended for
the corresponding oral presentation, approval, and acceptance.

JUVYLANE MANGLICMOT, ME-CE

Research Adviser

________________________________________________________________________

PANEL OF EXAMINERS

APPROVED by the Panel of Examiners with a description of PASSED.

DOUGLAS KROEGGER, Ph.D NORMAN HALLIDAY, ME-CE

Chairman Member

________________________________________________________________________

APPROVED and ACCEPTED in partial fulfillment of the requirements for APP5:

Practical Research 2 (Quantitative Research).

FLORA MAE C. YPARRAGUIRRE, Ph.D., MPSA

School Principal
 Republic of the Philippines
MAPÚA MALAYAN COLLEGES MINDANAO
HIGH SCHOOL DEPARTMENT
General Douglas MacArthur Highway,
Matina, Davao City

Declaration of Originality

We, Maria Rodriguez1, Michelle Lee, Alejandro Santos, Benedict Cruz, Gina
Divinagracia, and Sofia Tanaka, declare that this research is original to the best of our
knowledge. We declare further that this activity was undertaken by us.

Maria Rodriguez Michelle Lee Alejandro Santos

Researcher Researcher Researcher

Benedict Cruz Gina Divinagracia Sofia Tanaka

Researcher Researcher Researcher

DECEMBER 2023
 TABLE OF CONTENTS

COVER PAGE
TITLE PAGE
APPROVAL SHEET
DECLARATION OF ORIGINALITY
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES

1 INTRODUCTION
1.1 Overview and Problem of the Study
1.2 Theories and Related Literature
1.2.1 Theories
1.2.2 Related Literature
1.3 Conceptual Framework
1.4 Objectives of the Study and Hypothesis
1.5 Significance of the Study
1.6 Scope and Delimitation

2 METHODOLOGY
2.1 Research Design
2.2 Sampling Design and Respondents
2.3 Instruments and Procedures
2.4 Data Analysis

3 RESULTS AND DISCUSSION

3.1 Customer satisfaction levels in AI-assisted interactions versus
human-assisted interactions
3.2 Significant differences in satisfaction ratings between the two groups
 4 CONCLUSIONS AND RECOMMENDATIONS
Conclusions
Limitations
Recommendations

REFERENCES
APPENDICES
A. Statement of Project Member Contribution
B. Permission Letter/s
C. Letter of Informed Consent
D. Questionnaire/s
E. Validation Sheets
F. Validation Results
G. Turnitin Result

CURRICULUM VITAE
LIST OF TABLES

Table 1: Mean Interpretation of the Customer Satisfaction Ratings

Table 2: Customer's ratings in AI-assisted interactions versus
human-assisted interactions in different industries
Table 3: T-Test Analysis of Customer Satisfaction Ratings between
AI-assisted and Human-assisted Interactions

LIST OF FIGURES

Figure 1: Conceptual framework of the study

Quantifying the Impact of Artificial Intelligence on Customer
Satisfaction: A Comparative Study

Maria Rodriguez1*

Michelle Lee2

Alejandro Santos3

Benedict Cruz4

Gina Divinagracia5

Sofia Tanaka6

1,2
Department of Business Administration, University of Davao, Davao City, Philippines

3,4
School of Information Technology, Kaugmaon University, Davao City, Philippines

5,6Department of Economics, Indigenous Colleges of Davao, Davao City, Philippines

*Corresponding Author: mrodriguez@udavao.edu

Abstract
Artificial intelligence (AI) integration has gained significant momentum across Davao
City, Philippines industries. However, the impact of AI on customer satisfaction in the local
context remains largely unexplored. This study aims to address this gap by investigating
the influence of AI adoption on customer satisfaction in various sectors within Davao City.
The study compared customer satisfaction levels between AI-assisted and human-assisted
interactions in retail, service industries, and financial institutions. A comparative research
design was employed, and a representative sample of 400 participants was selected using
a stratified random sampling technique. A survey instrument was designed to collect data
on customer satisfaction ratings, demographic information, and prior experience with AI.
The findings indicate that AI-assisted interactions in customer service exhibited slightly
higher satisfaction levels compared to human-assisted interactions. The mean satisfaction
rating for both AI-assisted and human-assisted interactions was high, indicating their
positive level of satisfaction, showing their overall contentment towards AI-assisted and
human-assisted interactions. Statistically significant differences were observed between
the two groups, highlighting the positive impact of AI on customer satisfaction. These
findings have several implications for businesses in Davao City. By leveraging AI
technologies, organizations can enhance customer experiences, improve operational
efficiency, and build stronger relationships with their clientele. The study underscores the
need for businesses to understand and effectively implement AI-driven customer service
processes to meet customer expectations and gain a competitive edge.
Keywords: AI adoption, customer satisfaction, Davao City, comparative analysis, AI-
assisted interactions
I. Introduction
1.1 Overview and Problem of the Study
In recent years, artificial intelligence (AI) has witnessed significant growth and
integration across various industries in Davao City, Philippines (Johnson et al., 2022).
While AI holds immense potential to enhance customer experiences and improve
operational efficiency, its impact on customer satisfaction in the local context remains
underexplored. Without a comprehensive understanding of how AI affects customer
satisfaction, businesses in Davao City may struggle to effectively leverage AI technologies
to meet customer expectations and drive competitive advantage. Therefore, there is a need
for research to investigate the specific effects of AI adoption on customer satisfaction in
Davao City, particularly in sectors such as retail (Johnson et al., 2022), service industries
(Tan et al., 2023), and financial institutions (Martinez et al., 2024).
Commented [NJAM1]: Introduction: The introduction
section serves as the starting point of the paper, establishing
the necessary context and providing motivation for the
research or discussion that follows. It outlines the
background information and highlights the significance of
the topic or problem being addressed. By presenting
relevant literature, previous studies, or real-world examples,
the introduction sets the stage for the reader to understand
the importance and relevance of the research or discussion
to follow.
Commented [NJAM2]: Purpose: The purpose section of a
paper explicitly states the primary objective or intention
behind the research or discussion. It often includes the
thesis statement or hypothesis that the paper aims to prove
or explore. The purpose section provides clarity to the
reader about the central focus of the paper and what the
author seeks to achieve. It guides the direction of the
subsequent content and helps the reader understand the
specific goals or questions the paper addresses.
Commented [NJAM3]: Method: The method section
provides detailed information about the design, procedures,
assumptions, approaches, and data used in the research or
discussion. It outlines the methodology employed to gather
or generate data, conduct experiments, or analyze
information. This section allows other researchers or
readers to understand and evaluate the validity and
reliability of the methods used. It may include information
on data collection techniques, research instruments, sample
selection, experimental setup, statistical analyses, or any
other relevant details that are crucial for reproducing or
validating the findings.
Commented [NJAM4]: Product: The product section
presents the main findings or results derived from the
research or discussion. It showcases the outcomes of the
study or the argument developed throughout the paper.
This section may include statistical data, qualitative
observations, analytical insights, or any other relevant
information that supports the central argument or thesis. It
provides a concise summary of the key discoveries,
emphasizing their significance and their relevance to the
broader topic. The product section enables readers to grasp
the core message or outcome of the paper without delving
into the entire content.
Commented [NJAM5]: Conclusion: The conclusion
section interprets or extends the results beyond the scope
of the paper. It goes beyond summarizing the findings and
offers deeper insights, implications, or applications. The
conclusion may highlight the significance of the results and
their potential impact on the field or suggest areas for
further research. It draws inferences from the findings and
connects them to existing knowledge or theories.
Additionally, the conclusion may discuss the limitations of
the study and propose future directions or
recommendations based on the results obtained. It provides...
Commented [NJAM6]: Context of the Study
 In the global context, such as in the United States, the rapid adoption of artificial
intelligence (AI) in customer service has raised concerns about its impact on customer
satisfaction (Jones & Smith, 2023). As AI continues to shape customer service experiences
worldwide, businesses struggle to understand its influence on customer satisfaction and
may face challenges in effectively implementing AI-driven solutions to meet customer
expectations. Similarly, in Cebu City, where AI adoption is steadily growing across various Commented [NJAM7]: GLOBAL problem: mention a
particular country
industries, including retail, service, and finance, there remains a research gap in
understanding the specific effects of AI on customer satisfaction, which hampers
businesses in the City from fully harnessing the potential of AI technologies to optimize
customer experiences and achieve a competitive edge in the local market (Santos & Lim,
2023). Lastly, Davao City, being one of the major urban centers in the Philippines, houses Commented [NJAM8]: NATIONAL problem: mention a
particular place in the Philippines, EXCEPT for the locale.
a diverse range of industries, including retail, banking, healthcare, and e-commerce. While
AI-driven customer service promises improved efficiency and personalized interactions,
businesses in Davao City may encounter difficulties transitioning from traditional human-
assisted interactions to AI-assisted ones (Gomez & Chen, 2022). Commented [NJAM9]: LOCAL problem: mention a
specific place or nearby cities (or region if there is no
existing study in the area. Then, mention it on your research
Limited awareness and understanding of AI technologies among customers and gap.)
employees could lead to hesitancy and resistance toward AI adoption, impacting the overall
customer experience. While previous studies have explored the impact of AI on customer Commented [NJAM10]: RESEARCH GAP: specifically an
empirical gap.
satisfaction, most of them have been conducted in Western contexts and focused on specific
industries. Thus, it is essential to understand whether AI-driven interactions truly enhance
customer satisfaction or if they pose potential challenges. Commented [NJAM11]: PURPOSE of the study

1.2 Theories and Related Literature

1.2.1 Theories

This study is anchored in the Technology Acceptance Model (TAM) proposed by Commented [NJAM12]: Name of the theory

Fred D. Davis in 1989, which explains users' acceptance and adoption of new technologies Commented [NJAM13]: Proponent and year

based on perceived usefulness and ease of use. By assessing customers' perceptions of AI- Commented [NJAM14]: HIGHLIGHT/EXPLANATION of the
theory
assisted interactions, the study gains insights into the determinants of customer satisfaction
Commented [NJAM15]: Importance of the theory to the
with AI technologies in Davao City. Additionally, the study incorporates Customer study
Commented [NJAM16]: Theory 2: name of the theory
Experience Management (CEM) theory by Schmitt in 2003, focusing on delivering
Commented [NJAM17]: Name of the proponent and
positive, memorable experiences to customers. CEM examines the relationship between AI year proposed
adoption and customer satisfaction, analyzing the impact of AI-assisted interactions on
aspects such as personalization and service quality to optimize overall customer
satisfaction in Davao City. Commented [NJAM18]: HIGH/EXPLANATION of the
theory, with contextualization to the locale
Integrating TAM and CEM theories in the theoretical framework enables the study
to examine customer satisfaction determinants with AI adoption and the mediating role of
customer experience. Understanding customers' perceptions of AI technologies' usefulness,
ease of use, and holistic experiences during AI-assisted interactions yields valuable insights
for Davao City businesses to optimize their AI-driven customer service and enhance overall
customer satisfaction. Commented [NJAM19]: Relevance of the theories, in
general, to the study.
1.2.2 Related Literature

Industry-specific Impact of AI on Customer Satisfaction

Various industries have been investigated in prior studies to assess the impact of AI
on customer satisfaction, revealing potential benefits and challenges associated with its
adoption (Smith et al., 2018). For instance, in retail, AI-driven chatbots positively Commented [NJAM20]: Move 1, Strategy 1A

influenced satisfaction by delivering quick and efficient responses to inquiries (Poe et al.,
2018). Similarly, AI's role in the banking industry streamlined customer service processes, Commented [NJAM21]: Move 1, Strategy 1C

improving satisfaction levels (Johnson & Lee, 2019). AI-driven healthcare services in the
healthcare sector enhance patient satisfaction through personalized care and improved
accessibility (Gonzales & Santos, 2020). In e-commerce, AI-driven personalized
recommendations increase customer engagement and satisfaction (Brown & Williams,
2021). Customer demographics, such as age, gender, and prior AI experience, influenced
satisfaction with AI-based customer service (Rodriguez & Ramirez, 2022). However, Commented [NJAM22]: Move 2, Strategy 2B

limited research exists on quantifying AI's impact on customer satisfaction across

industries in Davao City. This study aims to provide empirical evidence of AI's impact on
customer experiences in Davao City, assisting businesses in informed AI adoption and
improving customer service processes to enhance satisfaction. Commented [NJAM23]: Move 3, Strategy 3B

In summary, this literature review highlights the positive influence of AI on

customer satisfaction in various industries, such as retail, banking, healthcare, and e-
commerce. However, the specific impact of AI on customer satisfaction in Davao City
remains understudied. This research aims to bridge this gap, contributing to the existing
body of knowledge on AI adoption and customer satisfaction while also providing practical
insights for businesses in Davao City seeking to leverage AI technologies to enhance
customer service experiences. Commented [NJAM24]: Do not forget to synthesize all
the literature after EACH theme. In synthesizing the
literature, mention the highlights, limitations and how your
1.3 Conceptual Framework study will address these.

Figure 1. Conceptual framework of the study

The conceptual framework provides a visual representation of the relationships

among the variables in the study. It suggests that AI adoption may directly impact customer
satisfaction, but the experience customers have during AI-assisted interactions could
mediate this relationship. Additionally, customer demographics may influence customer
satisfaction and the overall customer experience. The study seeks to explore and quantify
these relationships to understand the impact of AI on customer satisfaction in Davao City.

1.4 Objectives and Hypothesis

The main objective of this research is to quantify the impact of AI on customer

satisfaction in Davao City across various industries. Specifically, the study aims to: Commented [NJAM25]: General objective

1. Assess and compare customer satisfaction levels in AI-assisted interactions versus

human-assisted interactions.
2. Identify any significant differences in satisfaction ratings between the two groups. Commented [NJAM26]: Specific objectives:

Objective 1 is a descriptive objective (assessing and

This study also hypothesizes that: comparing the levels)

Ho: The two groups have no significant differences in the satisfaction ratings.
Objective 2 is an inferential objective (identifying the
significant difference)
Commented [NJAM27]: Since there is an inferential
objective, there is a hypothesis. Note that the number of
hypothesis depends on the number of inferential objectives.
1.5 Significance of the Study

This study's findings will provide valuable insights for businesses in Davao City
regarding the effective integration of AI technologies in customer service processes. By
understanding the impact of AI on customer satisfaction across industries, organizations
can make informed decisions about adopting and optimizing AI-driven customer service.
Additionally, the research will contribute to the academic literature on AI adoption and
customer satisfaction in the specific context of Davao City, bridging the research gap
identified in the existing body of knowledge.

1.6 Scope and Delimitation

This study focuses on assessing the impact of artificial intelligence (AI) on

customer satisfaction in Davao City, focusing only on the customer satisfaction levels in
AI-assisted interactions and human-assisted interactions across retail, service industries,
and financial institutions. More so, the study is limited to customers aged 18 years and
above with recent experience with AI-assisted or human-assisted customer service in the
selected industries within Davao City. The research does not explore other potential factors
that may influence customer satisfaction beyond AI adoption and customer experience.
Additionally, the study does not delve into the technical aspects of AI systems or the
financial implications of AI adoption for businesses.

2. Methodology

2.1 Research Design

The research design employed in this study is comparative, as proposed by Smith
and Johnson (2022). This design compares customer satisfaction levels in AI-assisted and
human-assisted interactions across different industries in Davao City. Using a comparative Commented [NJAM28]: Definition of the design, with its
contextualization based on the fictitious work.
design, the study seeks to provide a comprehensive understanding of the impact of artificial
intelligence (AI) on customer satisfaction in various sectors. This approach allows for
industry-specific comparisons, enabling the identification of potential variations in
customer experiences with AI-assisted interactions. This design enabled the researchers to
offer valuable insights that can inform businesses in Davao City about the effectiveness of
AI technologies in enhancing customer satisfaction across different industries. Commented [NJAM29]: Relevance of the design to the
study
2.2 Sampling and Respondents

A representative sample of customers was selected using a stratified random

sampling technique. Retail, banking, healthcare, and e-commerce industries were
considered strata, ensuring proportional representation. The participants were required to Commented [NJAM30]: Description of the sampling
design. Note that it has to have a citation.
meet the following criteria: (1) residents of Davao City, (2) customers who had recently
interacted with AI-assisted or human-assisted customer service in one of the selected
industries, and (3) aged 18 years or above. The sample size was determined based on Commented [NJAM31]: Criteria of the respondents

statistical significance and power analysis principles. Approximately 400 respondents were
recruited and equally distributed across the selected industries to ensure adequate
representation. Commented [NJAM32]: Elaboration of the number of
respondents
2.3 Instruments and Procedures

A researcher-made survey instrument, Customer Satisfaction with AI-Assisted Interactions

Questionnaire (CSAIQ), was designed to collect data on customer satisfaction. The
instrument consisted of two sections: (1) demographic information (e.g., age, gender, prior
experience with AI) and (2) customer satisfaction ratings. The customer satisfaction ratings
section included Likert scale items measuring satisfaction with AI-assisted interactions and
human-assisted interactions. Three (3) subject-matter experts validated this instrument.
The validation result showed that the questionnaire is acceptable (see Appendices E and
F). Thus, the instrument was administered online and offline, including online and paper-
based surveys distributed at physical locations. The researchers obtained permission to Commented [NJAM33]: Description of the instrument. In
this part, include the name of the questionnaire (if it has),
conduct the study (see Appendix B). Then, respondents were randomly assigned to Group state whether it's an adopted, adapted, or researcher-made.
If it's an adopted questionnaire, include the proponents,
A (AI-assisted interactions) and Group B (human-assisted interactions). They were also year, and reliability/validity results. If it's an adapted or
researcher-made questionnaire,, include the validation
requested to provide feedback on their recent customer service interactions, specifically results. Then, briefly describe how it's gonna be deployed:
physical, online, or both.
assessing their satisfaction levels. Ethical considerations were addressed by obtaining
necessary approvals from the relevant research ethics committee. Participation in the study
was voluntary, and informed consent was obtained from each participant (see Appendix
C). The survey spanned over three months for adequate sample size and data collection.
Their satisfaction ratings are interpreted using the interpretation scale. Commented [NJAM34]: This part is the procedure.
Ensure to follow the steps as suggested by your research
teacher.
Table 1
Mean Interpretation of the Customer Satisfaction Ratings
Rating
Description Interpretation
Scale
Customers expressed a very positive level of satisfaction
4.21 – 5.00 Very High with their experiences, indicating a strong approval of the
AI-assisted or human-assisted interactions.
Customers reported a positive level of satisfaction,
3.41 – 4.20 High indicating overall contentment with the AI-assisted or
human-assisted interactions.
Customers suggest a satisfactory but not overly
2.61 – 3.40 Moderate enthusiastic experience with AI-assisted or human-
assisted interactions.
Customers expressed dissatisfaction, highlighting notable
1.81 – 2.60 Low shortcomings or negative aspects of the AI-assisted or
human-assisted interactions.
Customers conveyed a highly negative level of
satisfaction, signaling significant dissatisfaction and
1.00 – 1.80 Very Low
possible critical issues with the AI-assisted or human-
assisted interactions.

2.4 Data Analysis

The collected data were analyzed using appropriate statistical methods. Descriptive
statistics, such as means, were used to summarize demographic characteristics and
customer satisfaction ratings. Comparative analyses, such as t-tests, assessed the
differences in customer satisfaction levels between AI-assisted and human-assisted
interactions. Statistical software, such as SPSS or R, was utilized for data analysis.
3. Results and Discussion
3.1 Customer Satisfaction in AI-Assisted Interactions versus Human-Assisted Interactions
Commented [NJAM35]: This answers Objective 1. The
descriptive frequency used is the mean. Note that this varies
depending on the suggestion of your research adviser and
panelists.
Commented [NJAM36]: This answers Objective 2. This is
the inferential statistics (t-test) and justification.
Commented [NJAM37]: Include what software is used in
analyzing the data.

Table 1 presents the customer satisfaction ratings for AI-assisted interactions and
human-assisted interactions across different industries.
Table 2
Customer ratings in AI-assisted interactions versus human-assisted interactions in
different industries
Human-
AI-assisted
Industry Description assisted Description
Interaction
Interaction
1. Retail 4.2 High 4.0 High
2. Service Industries 4.2 High 4.0 High
3. Financial Institutions 4.2 High 4.0 High
Overall 4.2 High 4.0 High

In the retail sector, the mean satisfaction rating for AI-assisted interactions was 4.2,
slightly higher than the mean rating of 4.0 for human-assisted interactions. A similar pattern
is observed in the service industries and financial institutions, where AI-assisted
interactions received higher mean satisfaction ratings than human-assisted interactions. Commented [NJAM38]: Reporting and summarizing the
results
These findings suggest that AI-assisted interactions in customer service positively impact
customer satisfaction in Davao City. Customers appear to experience slightly higher
satisfaction levels when engaging with AI-driven systems compared to traditional human
interactions. Commented [NJAM39]: Interpreting the result

As observed in these findings, these are aligned with the trends suggested in the
previously reviewed studies. For instance, the study by Smith et al. (2018) on the impact
of AI-driven chatbots in the retail sector reported a higher level of customer satisfaction
with AI-assisted interactions, which is consistent with the results of the present study in the
retail industry. Additionally, the paper by Gonzales and Santos (2020) on enhancing patient
satisfaction through AI-driven healthcare services highlighted the positive influence of AI
on customer satisfaction. While the current study focuses on different industries, the
findings demonstrate a similar pattern, indicating that AI-assisted interactions contribute to
higher customer satisfaction. Similarly, Brown and Williams (2021) explored the effects of
AI-driven personalized recommendations on customer satisfaction in e-commerce. Commented [NJAM40]: Comparing results with
literature
Although the present study does not specifically examine personalized
recommendations, the overall trend of AI-assisted interactions leading to higher customer
satisfaction is consistent with the notion that AI technologies can enhance customer
experiences across different sectors. Commented [NJAM41]: Accounting for the results
3.2 Significant differences in satisfaction ratings between the two groups

Table 2 presents the results of the t-test analysis, which aimed to compare the mean
satisfaction ratings between AI-assisted interactions and human-assisted interactions
within different industries. The t-value and p-value were calculated to determine the
statistical significance of the differences.

Table 3
T-Test Analysis on Customer Satisfaction Ratings between AI-assisted and Human-
assisted Interactions
Industry t-value p-value Remarks
1. Retail 2.34 0.032
2. Service Industries 2.34 0.032 Reject Ho
3. Financial Institutions 2.34 0.032

In all three industries (Retail, Service Industries, and Financial Institutions), the t-
tests revealed statistically significant differences between AI-assisted interactions and
human-assisted interactions. The t-value of 2.34 and p-value of 0.032 indicate that the mean
satisfaction ratings for AI-assisted interactions were significantly higher compared to
human-assisted interactions. These findings align with the literature, suggesting that AI
adoption positively impacts customer satisfaction (Smith, Johnson, & Williams, 2018;
Johnson & Lee, 2019; Gonzales & Santos, 2020). The literature review highlighted similar
trends, where studies reported improved customer satisfaction levels using AI-driven
technologies in various industries.

The findings of this study contribute to the existing literature by specifically

focusing on the context of Davao City. The results provide empirical evidence to support
the claim that AI-assisted interactions lead to higher customer satisfaction levels compared
to human-assisted interactions in retail, service industries, and financial institutions.
Moreover, these findings have important implications for businesses in Davao City, as they
suggest that implementing AI technologies in customer service processes can enhance
customer satisfaction and potentially lead to improved business performance. The findings
support the literature and suggest that businesses in Davao City can benefit from integrating
AI technologies in their customer service processes to enhance customer satisfaction.
4. Conclusions and Recommendations

4.1 Conclusions

In conclusion, the study's major findings highlight the significant impact of

artificial intelligence (AI) on customer satisfaction in Davao City, Philippines. Through a
comparative design, the research revealed that AI-assisted interactions positively
influenced customer satisfaction across various industries, including retail, service, and
finance. Customers expressed high satisfaction levels with AI-driven chatbots, citing quick
and efficient responses to inquiries, personalized care, and improved service quality as key
factors contributing to their positive experiences. Furthermore, the study found that AI
adoption was pivotal in enhancing customer engagement and loyalty, increasing overall
satisfaction. These findings underscore the importance of implementing AI-driven Commented [NJAM42]: Major findings

customer service strategies in businesses to optimize customer experiences and gain a

competitive edge in the dynamic market of Davao City. Commented [NJAM43]: implication

4.2 Limitations
While this study provides valuable insights into the impact of AI on customer
satisfaction in the context of Davao City, certain limitations need to be considered. Firstly,
the study employed a comparative design, comparing AI-assisted and human-assisted
interactions, which may not capture the full range of AI applications and their effects on
customer satisfaction. Additionally, the study relied on self-reported satisfaction ratings,
which may be subject to respondent bias. Future studies could incorporate objective
customer satisfaction measures or employ qualitative methods to gain deeper insights into
customer experiences.

4.3 Recommendations

Based on the findings and limitations of this study, the researchers recommend
conducting an in-depth industry-specific analysis to understand the factors contributing to
the higher satisfaction levels in AI-assisted interactions, including customer expectations
and the effectiveness of AI technologies in addressing industry-specific challenges. It is
also recommended to explore the customers' perception and trust in AI-driven interactions,
investigating how AI systems' transparency, explainability, and trustworthiness influence
customer satisfaction and trust in AI technologies. Lastly, investigate the ethical
implications of AI adoption in customer service and its impact on customer satisfaction
that focuses on concerns related to data privacy, bias, fairness, and accountability in AI-
driven interactions and their potential effects on customer satisfaction.
References

Brown, C. & Williams, E. (2021). The effects of AI-driven personalized recommendations

on customer satisfaction in e-commerce.

Gonzales, P. & Santos, L. (2020). Enhancing patient satisfaction through AI-driven

healthcare services.

Johnson, M. & Lee, S. (2019). Exploring the role of AI in improving customer satisfaction
in the banking industry.

Johnson, R., Garcia, M., & Santos, L. (2022). The impact of AI adoption on customer
satisfaction in Davao City's retail sector. Journal of Customer Satisfaction, 10(2),
45-58.

Martinez, E., Reyes, B., & Cruz, D. (2024). Assessing the influence of AI-assisted
interactions on customer satisfaction in Davao City's financial institutions. Journal
of AI in Business, 15(1), 28-42.

Rodriguez, A. & Ramirez, M. (2022). Demographic Factors and Customer Satisfaction

with AI-Based Customer Service.

Smith, J., Johnson, R., & Williams, A. (2018). The Impact of AI-Driven Chatbots on
Customer Satisfaction in the Retail Sector.

Tan, A., Lim, C., & Fernandez, J. (2023). Exploring the effects of AI integration on
customer satisfaction in the service industry of Davao City. International Journal
of AI Applications, 7(3), 112-127.
 APPENDIX A

Statement of Project Member Contribution

SPECIFIC TASKS IN DETAIL

% of
Name of Member Results and Conclusions and Contribution to
Introduction Methods Other Parts
Discussion Recommendations the Whole
Project
took the lead in
designing the
study's responsible for
methodology creating Table 2
All project calculated
members descriptive
All project evaluated the study's worked on the
1. Rodriguez, Maria collaborated in the statistic
members limitations and conceptual 100%
(Leader) development of the
collaborated in methodology framework
study's performed the t-
finalizing the
introduction. test analysis
research design took on the role of
and data project coordinator
collection
procedures.
contributed to took the lead in
formulating the designing the
drafted the study's researched and
research objectives study's interpreted the
conclusion, summarizing summarized the
2. Lee, Michelle and highlighting methodology results and
the major results and Technology 95%
(Secretary) the significance of compared them
highlighting the study's Acceptance Model
the study in the contributed to with the literature
contributions. (TAM)
context of Davao validating the
City questionnaire
 conducted contributed to the drafted the study's researched and
interpreted the
3. Santos , extensive literature sampling design conclusion, summarizing summarized the
results and
Alejandro research and and selection of the major results and Technology 93%
compared them
(Member) identified the industries for the highlighting the study's Acceptance Model
with the literature
research gap study contributions. (TAM)
contributed to
formulating the
contributed to the provided insights
research objectives interpreted the
sampling design evaluated the study's into Customer
4. Cruz, Benedict and highlighting results and
and selection of limitations and Experience 95%
(Member) the significance of compared them
industries for the methodology Management
the study in the with the literature
study (CEM)
context of Davao
City
responsible for
calculated
conducted constructing the provided insights
descriptive
5. Divinagracia, extensive literature survey instrument evaluated the study's into Customer
statistic
Gina research and limitations and Experience 95%
(Member) identified the contributed to methodology Management
performed the t-
research gap validating the (CEM)
test analysis
questionnaire
contributed to
formulating the
research objectives interpreted the
responsible for evaluated the study's
6. Tanaka, Sofia and highlighting results and responsible for
constructing the limitations and 97%
(Member) the significance of compared them creating Table 1
survey instrument methodology
the study in the with the literature
context of Davao
City
 APPENDIX B

Permission Letter
 APPENDIX C

Letter of Informed Consent

 APPENDIX D

Customer Satisfaction with AI-Assisted Interactions Questionnaire (CSAIQ)

Dear Respondent:
Thank you for agreeing to participate in this research study. Your valuable insights will
contribute to a better understanding of the impact of artificial intelligence (AI) on customer
satisfaction in Davao City. Please take a few minutes to answer the following questions.
Your responses will remain confidential and will be used for research purposes only.
Part 1: Demographic Information
Age: ___ 18-23 years old ___ 30-35 years old ___ 41-45 years old
___ 24-29 years old ___ 36-40 years old ___ 45-up years old
Gender: ___ Male ___ Female
How often do you interact
Always Frequently Occasionally Rarely Never
with customer service in the
(5) (4) (3) (2) (1)
following industries?
1. Retail
2. Service Industries
3. Financial Institutions

Prior experience with AI-Assisted Interactions and Human-Assisted Interactions:

1. Have you recently interacted with AI-assisted customer service in any selected
industries? ____ Yes ___ No

2. Have you recently interacted with human-assisted customer service in any selected
industries? ____ Yes ___ No
Part 2: Customer Satisfaction Ratings
For the following questions, please rate your level of satisfaction on a scale of 1 to 5,
with 1 being "Not Satisfied" and 5 being "Highly Satisfied."
Highly Moderately Highly
AI-Assisted Satisfied Dissatisfied
Satisfied Satisfied Dissatisfied
Interactions (4) (2)
(5) (3) (1)
1. Overall
satisfaction with
AI-assisted
interactions
 2. Perceived
usefulness of AI-
assisted
interactions
3. Perceived ease
of use of AI-
assisted
interactions
Highly Moderately Highly
Human Satisfied Dissatisfied
Satisfied Satisfied Dissatisfied
Interactions (4) (2)
(5) (3) (1)
1. Overall
satisfaction with
human
interactions
2. Perceived
usefulness of
human
interactions
3. Perceived ease
of use of human
interactions

Do you have additional comments or suggestions about your experiences with AI-assisted
or human-assisted customer service interactions?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
 APPENDIX E

Validation Sheet

Name of Evaluator: ______________________ Degree: ________________

Position: ______________________ Number of Years in Teaching: _____
To the evaluator: Please check the appropriate box for your rating.
Point Equivalent: 5 – Excellent 3 – Good 1 - Poor
4 – Very Good 2 – Fair

5 4 3 2 1
1. CLARITY of DIRECTIONS and ITEMS
The question's vocabulary level, language structure, and
concept suit the respondents' level. The test direction and items
are written clearly and understandably.

2. PRESENTATIONS/ORGANIZATION of ITEMS
The items are organized logically.
3. SUITABILITY of ITEMS
The items appropriately represent the substance of the
research. The questions are designed to determine the
conditions, knowledge, skills, and attitudes that should be
measured.
4. ADEQUATENESS of ITEMS per CATEGORY
The items represent the coverage of the research adequately.
The number of questions per category is representative enough
of all questions needed for the research.
5. ATTAINMENT of the PURPOSE
The instrument as a whole fulfills the objective for which it is
constructed.
6. OBJECTIVITY
Each item question only one specific answer or measure only
one behavior, and no aspect of the questionnaire suggests bias
on the part of the research.
7. SCALE and EVALUATION in RATING SYSTEM
The scale adopted is appropriate for the items.

Remarks:
______________________________________________________________________________
______________________________________________________________________________

________________________
Signature over Printed Name
 APPENDIX F

Validation Results

Validator Ratings Remarks

1. Dwight Gabas 3.20 Questionable

2. Banjo Bucao 4.00 Acceptable

3. Felicia Logario 3.80 Acceptable

Overall 3.67 Acceptable

Rating Remarks Interpretation

4.21 – 5.00 Excellent All items in the questionnaire are fit for the study.
3.41 – 4.20 Acceptable Some items need to be revised to fit the study.
More items need to be reviewed and revised to fit the
2.61 – 3.40 Questionnable
study. The questionnaire needs to be re-validated.
The majority of the items are needed to be revised and
1.81 – 2.60 Poor
re-validated. The questionnaire needs to be re-validated.
The questionnaire is not fit for the study. Advise
1.00 – 1.80 Unacceptable
researchers to craft/find another questionnaire.
APPENDIX G

Turnitin Result
 CURRICULUM VITAE

PERSONAL INFORMATION

Name: insert your photo

Birthday:
here, white
Age:
background, bust
Grade and Section:
shot only,
Strand:
Address: formal/business
Contact Number/s: attire
Email Address:

EDUCATIONAL BACKGROUND

Senior High School:

Junior High School:
Elementary:

AWARDS/ACHIEVEMENTS

List your awards/achievements in your extracurricular activities from elementary

up to present in reverse chronological order (present to past). Example:

1st Place, Extemporaneous Speaking, March 2022

Pasikatay 2022

Champion, E-Sports (Mobile Legends) March 2022

Pasikatay 2022

3rd Runner-Up, Math-Sci National Quiz Bee September 2015

1st Place, Spelling Bee October 2013

OTHER SKILLS AND INTEREST

Skill/s:
Talents:
Hobbies: