Should Chatbot Ads Be Chatty

Powered by artificial intelligence (AI), chatbots are increasingly capable of simulating human-like conversations to enable users to interact with digital devices effectively. But, is this desirable for strategic communications? Will chatbots be more persuasive if they are more human-like, not only in their appearance but also in their interaction and delivery of advertising content? Or will they raise unrealistic user expectations? We explored these questions with a 2 (chatbot profile: human-like vs. machine-like) x 2 (message interactivity: high vs. low) x 2 (ad type: narrative vs. factual) experiment (N = 414). Data reveal that high message interactivity fosters positive attitudes toward the chatbot and the ad by increasing perceptions of social presence, as well as by mitigating violated expectancy. When a chatbot is machine-like in appearance, higher interactivity and adoption of a narrative style of delivery serve to increase ad persuasiveness by heightening social presence. Theoretical as well as practical implications for chatbot advertising are discussed.