AI insurance chatbots and phygital service engagement: the triadic impact of trust-anxiety-complexity- on aging consumers

Abstract

This study examines elderly consumers’ perceptions of the design of AI insurance chatbot services in a phygital context. Drawing on the extended reality technology (ERT) framework and the stimulus–organism–response (SOR) model, it explores the cognitive–affective dynamics shaping chatbot adoption in a sensitive service setting. Data were collected from 396 elderly consumers of major insurance companies in Malaysia and analysed using structural equation modelling to assess mediating and moderating effects. Findings show that perceived trust critically mediates the relationship between cognitive factors and chatbot adoption. Technology anxiety and perceived complexity strongly moderate the trust–usage relationship, confirming a triadic interaction. The study advances theory by integrating the ERT–SOR framework to explain the physical–digital service dichotomy and the continuous use of chatbots. It also highlights the unique affective and psychosocial aspects of aging consumers and offers practical guidance for insurers to design trust-enhancing, user-friendly chatbot services for older users.