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July 2024
Article

Chatbots and Mental Health: Insights into the Safety of Generative AI

By: Julian De Freitas, Ahmet Kaan Uğuralp, Zeliha Uğuralp and Stefano Puntoni

Chatbots are now able to engage in sophisticated conversations with consumers. Due to the ‘black box’ nature of the algorithms, it is impossible to predict in advance how these conversations will unfold. Behavioral research provides little insight into potential safety... View Details

Keywords: Autonomy; Chatbots; New Technology; Brand Crises; Mental Health; Large Language Model; AI and Machine Learning; Behavior; Well-being; Technological Innovation; Ethics

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November 2022 (Revised March 2024)
Case

Replika AI: Monetizing a Chatbot

By: Julian De Freitas and Nicole Tempest Keller

In early 2018, Eugenia Kuyda, co-founder and CEO of San Francisco-based chatbot Replika AI, was deciding how to monetize the app she had built. Launched in 2017, Replika was a consumer AI “companion app” developed by a team of AI software engineers originally based in... View Details

Keywords: Mental Health; Subscriber Models; TAM; Monetization Strategy; Marketing Strategy; Product Marketing; AI and Machine Learning; Applications and Software; Product Positioning; Health Disorders; Technology Industry

February 2024
Teaching Note

Replika AI: Monetizing a Chatbot

By: Julian De Freitas

Teaching Note for HBS Case No. 523-016. View Details

February 2025
Article

Disclosure, Humanizing, and Contextual Vulnerability of Generative AI Chatbots

By: Julian De Freitas and I. Glenn Cohen

In the wake of recent advancements in generative AI, regulatory bodies are trying to keep pace. One key decision is whether to require app makers to disclose the use of generative AI-powered chatbots in their products. We suggest that some generative AI-based chatbots... View Details

Keywords: AI and Machine Learning; Governing Rules, Regulations, and Reforms; Applications and Software; Well-being

10 Sep 2024
Research & Ideas

What Happens When Business Owners Turn to ChatBots for Advice

my mind,” Koning says. “Already we’re seeing how generative AI can change people’s lives.” Chatbot versus an old-fashioned business guide The study enrolled 640 entrepreneurs in Kenya across various sectors, including transportation,... View Details

Keywords: by Ben Rand

26 Oct 2023 - 28 Oct 2023
Conference Presentation

The Dark Side of Generative AI: Chatbots and Mental Health

By: Julian De Freitas, K Uguralp, Z Oguz and Stefano Puntoni

8 Sep 2023
Conference Presentation

Chatbots and Mental Health: Insights into the Safety of Generative AI

By: Julian De Freitas, K. Uguralp, Z. Uguralp and Stefano Puntoni

Keywords: AI and Machine Learning; Well-being

May 2024
Supplement

HubSpot and Motion AI (B): Generative AI Opportunities

The technologies driving artificial intelligence (AI) had progressed significantly since HubSpot’s acquisition of Motion AI in 2017. Generative AI was the newest major development. Software-as-a-service (SaaS) companies such as HubSpot were analyzing how generative AI... View Details

Keywords: Artificial Intelligence; CRM; Chatbots; Sales Management; Generative Ai; SaaS; Marketing; Sales; AI and Machine Learning; Customer Relationship Management; Applications and Software; Technological Innovation; Competitive Advantage; Technology Industry; United States

2025
Working Paper

Why Most Resist AI Companions

By: Julian De Freitas, Zeliha Oğuz-Uğuralp, Ahmet Kaan Uğuralp and Stefano Puntoni

AI companion applications—designed to serve as synthetic interaction partners—have recently become capable enough to reduce loneliness, a growing public health concern. However, behavioral research has yet to fully explain the barriers to adoption of such AI and... View Details

Keywords: Generative Ai; Chatbots; Artificial Intelligence; Algorithmic Aversion; Lonelines; Technology Adoption; AI and Machine Learning; Well-being; Emotions

05 Nov 2024
Research & Ideas

AI Can Help Leaders Communicate, But Can't Make Employees Listen

If a chatbot can Slack convincingly in the boss’s voice, will employees follow orders once they realize the CEO is actually a machine? A novel two-part study finds that an artificial intelligence (AI) View Details

Keywords: by Ben Rand; Information Technology; Technology

Forthcoming
Article

Engaging Customers with AI in Online Chats: Evidence from a Randomized Field Experiment

By: Shunyuan Zhang and Das Narayandas

We examine how artificial intelligence (AI) affected the productivity of customer service agents and customer sentiment in online interactions. Collaborating with a meal delivery company, we conducted a randomized field experiment that exploited exogenous variation in... View Details

Keywords: AI and Machine Learning; Customer Focus and Relationships; Performance Efficiency

May 2024
Article

The Health Risks of Generative AI-Based Wellness Apps

By: Julian De Freitas and G. Cohen

Artifcial intelligence (AI)-enabled chatbots are increasingly being used to help people manage their mental health. Chatbots for mental health and particularly ‘wellness’ applications currently exist in a regulatory ‘gray area’. Indeed, most generative AI-powered... View Details

Keywords: AI and Machine Learning; Well-being; Governing Rules, Regulations, and Reforms; Applications and Software

February 2018 (Revised October 2019)
Case

HubSpot and Motion AI: Chatbot-Enabled CRM

By: Jill Avery and Thomas Steenburgh

HubSpot, an inbound marketing, sales, and customer relationship management (CRM) software provider, announced that it had acquired Motion AI, a software platform that enabled companies to easily build and deploy chatbots, fueled by artificial intelligence, to interact... View Details

April 2023 (Revised September 2023)
Case

Apple's iPhone Revolution: Pioneering the Circular Economy

By: George Serafeim

When asked to identify an example of a circular economy business model that has generated billions in revenues for a company, ChatGPT, the famous chatbot that in 2022 rocked the world with its ability to perform a variety of tasks, immediately identified and... View Details

Keywords: Iphone; Smartphone; Waste Management; Recycling; Innovation; Product Upgrade; Product Life Cycle; Sustainability; Climate Impact; Digital; Business Model Innovation; Climate Change; Information Technology; Business Model; Electronics Industry; Information Technology Industry

September 2020 (Revised September 2021)
Supplement

Student Success at Georgia State University (B)

By: Michael W. Toffel, Robin Mendelson and Julia Kelley

This is a supplement to the Student Success at Georgia State University (A) case. The (B) case includes the results of a randomized control trial that Georgia State conducted to test education technology start-up AdmitHub’s chatbot solution as a strategy for improving... View Details

January 2023 (Revised June 2023)
Case

Replika: Embodying AI

By: Shikhar Ghosh, Shweta Bagai and Marilyn Morgan Westner

Replika was a virtual AI companion that provided a way for people to process their emotions, build connections in a safe environment, and get through periods of loneliness. The chatbot fulfilled a user's need for a friend, romantic partner, or purely an emotional... View Details

Keywords: AI; AI and Machine Learning; Applications and Software; Human Needs; California

June 2025
Case

AI Wars in 2025

By: Andy Wu and Anna Yang

In June 2025, Google leaders in Mountain View, CA convened after its parent company Alphabet shed a quarter-trillion in market capitalization in a matter of months. The immediate spark—the quiet revelation that Google searches had dipped for the first time in 20... View Details

December 2023 (Revised August 2024)
Case

Monsters in the Machine? Tackling the Challenge of Responsible AI

By: Paul M. Healy and Debora L. Spar

In November of 2022, the small tech company OpenAI released ChatGPT, an artificial intelligence chatbot which quickly captured the public’s imagination—becoming the world’s fastest-growing consumer application within months of its release. Though observers from across... View Details

Keywords: Technological Innovation; AI and Machine Learning; Ethics; Governing Rules, Regulations, and Reforms; Technology Adoption; Corporate Social Responsibility and Impact; Technology Industry; United States; European Union; China

October 2023 (Revised January 2025)
Case

Sydney Loves Kevin

By: Ryan W. Buell and Himabindu Lakkaraju

Kevin Roose was a columnist and podcast host for the New York Times, who focused on technology and its effects on society. When Microsoft launched the latest version of its search engine Bing in February 2023, the company invited Roose to its Redmond campus to... View Details

Keywords: Newspapers; AI and Machine Learning; Technology Adoption; Technological Innovation; Perspective; Media and Broadcasting Industry; Technology Industry

2025
Working Paper

Lessons from an App Update at Replika AI: Identity Discontinuity in Human-AI Relationships

By: Julian De Freitas, Noah Castelo, Ahmet Kaan Uğuralp and Zeliha Oğuz-Uğuralp

As consumers increasingly interact with AI applications specialized for social relationships, what is the nature and depth of these relationships among actual users, and can company actions influence these dynamics? We find that active users of the US-based AI... View Details

Keywords: AI and Machine Learning; Welfare; Loss; Well-being; Identity; Perception; Relationships

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