Trust and Privacy Concern in AI-Powered Chatbot: A Conceptual Framework for Customer Purchase Intention in Malaysia Apparel SMEs

Artificial intelligence (AI) technologies, particularly chatbots, are transforming customer service by enhancing efficiency, consistency, and personalization; however, their adoption within small and medium-sized enterprises (SMEs) in Malaysia’s apparel sector remains limited despite the sector’s critical contribution to the national economy. This conceptual paper investigates how AI-powered chatbots influence customer purchase intention by addressing three key service dimensions: 24/7 availability, response consistency, and personalized interactions, while positioning trust as a mediating mechanism and privacy concern as a moderating factor that together shape how customers perceive and respond to chatbot-driven services. Using a critical review of extant literature and theoretical foundations drawn from the Technology Acceptance Model, Service Quality Theory, and Expectation Confirmation Theory, the study develops a conceptual framework that advances three propositions linking chatbot attributes to purchase intention. The results of this theoretical synthesis suggest that chatbots can mitigate SMEs’ operational constraints, improve customer satisfaction, and strengthen competitiveness in digital markets. The paper contributes theoretically by extending technology adoption and service quality discussions into the SME context, and practically by offering strategic insights for managers and policymakers seeking cost-effective digital transformation solutions. Finally, directions for future empirical research are outlined, including testing the framework across industries and cultural contexts to validate its applicability.

Artificial Intelligence (AI); Chatbot

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