• Asia pacific journal of information systems
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• v.33 no.3
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• pp.652-676
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• 2023

The objective of this study is to provide a deeper understanding of the factors that lead to the development and adoption of AI-based chatbots. We analyze the structural relationship between the organizational (externalities), systematic (fit), and the consumer-related (psychological) factors and their role in the adoption of AI-based chatbots. Founded on the theories of task-technology fit and network externalities, we present a conceptual model overlooking common perception-based theories (e.g., Technology Acceptance Model). We collected 380 responses from Indian banking consumers to test the model using the PLS-SEM method. Interestingly, the findings present a positive impact of all factors on consumers' intention to adopt AI-based chatbots. However, the interplays between these factors provide a mixed perspective for literature. Apart from employing a combination of factors that have been used to study technology adoption, our study explores the importance of externalities and their relationship with fit factors, a unique outlook often overlooked by prior research. Moreover, we offer a clear understanding of latent variables such as trust, and the intricacies of their interplays in a novel context. Thereby, the study offers implications for literature and practice, followed by future research directions.