Disclosing the AI Identity: How Virtual Assistant Transparency Shapes Consumer Perceptions

Artificial intelligence (AI) is transforming consumer-brand interactions, particularly in e-commerce, where AIpowered virtual assistants play a central role in customer engagement. A key challenge in AI-driven service interactions is AI transparency - the explicit disclosure of an AI's non-human nature - which can influence consumer trust, perceived quality, and purchase behavior. While previous research has broadly examined AI acceptance, this study provides a focused empirical analysis of how AI transparency shapes consumer perceptions and decision-making processes. Using structural equation modeling (SEM) with validated theoretical constructs, this research examines how AI transparency influences trust in the retailer, perceived quality, ease of use, customer inspiration, and purchase intention. The findings indicate that AI transparency exerts a positive influence on consumer trust in retailers and perceived quality, thereby shaping consumers' attitudes toward AI-driven interactions. However, satisfaction with the AI service agent does not directly influence purchase intention, suggesting that other factors, such as customer inspiration, play a more significant role in driving consumer behavior. Additionally, while privacy concerns and risk perception were included as boundary conditions, they were not found to have statistically significant effects on key consumer outcomes. From a managerial perspective, these insights underscore the necessity for companies to adopt a balanced AI transparency strategy, ensuring clarity while addressing potential concerns about automation and privacy. This study contributes to the growing body of literature on AI ethics and consumer psychology, offering both theoretical advancements and practical guidance for businesses seeking to integrate AI-powered virtual assistants while maintaining high levels of consumer trust and engagement.