Exploring How Customer Experience and AI-Driven Service Innovation Influence Perceived Firm Innovativeness: Digital Trust as a Moderator

This study investigates how customer experience (CE) drives AI-driven service innovation (ADSI) and enhances perceived firm innovativeness (PFI), with digital trust (DT) as a moderator. Focusing on South Asia’s banking and financial services sector, data from 277 employees were analyzed using Structural Equation Modeling (SEM). Findings reveal that CE and ADSI positively influence PFI, while DT significantly strengthens these relationships. Firms perceived as more innovative are those investing in advanced CE and ADSI, supported by higher DT. The study highlights the strategic role of CE, ADSI, and DT in fostering innovation and competitiveness within financial services.