THE ROLE OF AI-POWERED CHATBOTS IN IMPROVING CUSTOMER SATISFACTION ON E-COMMERCE PLATFORMS

Abstract

In today’s highly competitive and digitally driven marketplace, e-commerce businesses are increasingly leveraging Artificial intelligence (AI) technologies to optimize operations and promote customer experiences. As part of these technologies, AI-powered Chatbots have become a prominent tool for enhancing customer satisfaction by delivering instant, accurate, and personalized responses. Through the review of  recent literature and real-world case studies, this paper assessed the role of AI-powered Chatbots in improving customer satisfaction on e-commerce platforms by highlighting how they enhance personalization and customer engagement, provide 24/7 availability and instant support, handle repetitive queries and reduce telephone cost, offer accuracy, accessibility, and reliability, and promote faster resolution and scalability. This study also explores AI-powered Chatbots challenges encountered by users on e-commerce platforms. The study concludes that e-commerce businesses utilizing AI-powered Chatbots can improve customer satisfaction, trust, and loyalty while also gaining competitive edge and customer retention. Hence, this study recommends that as AI-powered Chatbots become increasingly prevalent in e-commerce, businesses must continually enhance their technology to improve Chatbot-human interactions, and promote long-term brand loyalty through continuous innovation.