Dishonesty Through AI: Can Robots Engage in Lying Behavior?

This book chapter addresses how artificial intelligence (AI) engages in lying behavior in service encounters when customers interact with it when booking trips, investing money, or using customer service. The chapter concerns how AI learns from human behavior and how it practices the ethics of humans in service encounters. We identify three types of lying behavior from AI: (a) hallucinatory lying behavior, (b) manipulative lying behavior, and (c) directed lying behavior. Further, we show that mechanical AI, thinking AI, and feeling AI engage in these behaviors to different extents. By becoming familiar with concepts such as corporate digital responsibility and AI lying behavior, managers of service firms will be better equipped to provide service in the future.