The Effect of Artificial Intelligence Recommender Systems on Netflix Customer Satisfaction

Abstract

Abstract – The use of Artificial Intelligence (AI) provides numerous benefits across many sectors. One sector that significantly benefits from AI is the entertainment service industry. Major companies such as YouTube, Amazon, Netflix, Spotify, and others utilize AI to enhance their businesses, with recommendation systems being one of the key AI applications. Netflix is a company that uses its recommendation system to rapidly grow its customer base; however, many customers also unsubscribe. Apart from the percentage of customers who stop subscribing, there is a theoretical gap in existing research specifically regarding AI recommendation systems on Netflix. Some researchers state that Netflix’s recommendation system is effective and provides useful guidance for users, while others argue that it still needs improvement due to biases that cause films to be recommended even when customers do not want them. Based on this, the study aims to determine whether Netflix’s AI recommendation system can increase customer satisfaction, which in turn can enhance business performance. The respondents are active Netflix users aged 18 and above, located in Jakarta, West Java, Central Java, East Java, Sumatra, Kalimantan, and Sulawesi, ensuring that the results represent Indonesia.

Keywords - AI Recommender System, Customer Satisfaction, Netflix