AI-powered Customer Service: The Role of Chatbots in Enhancing E-commerce Interactions

Abstract

Abstract The rise of artificial intelligence (AI) in various industries is rapid in the current competitive world across the globe. With the aim of attracting and engaging customers with a product or service, companies are stepping into new trends in providing customer service whenever it is needed. In this pursuit, the overwhelming growth of AI has ignited companies to adopt and apply AI to one of their core business processes, customer service. The implementation of AI in customer service has laid the road map for chatbots to address and solve customer issues with customised solutions. By leveraging natural language processing (NLP) and machine learning (ML), these chatbots can provide customised support to customers with personalised responses to modernise the customer service procedure and improve the customers’ overall experience. The present research explores the role of AI-powered chatbots on e-commerce platforms by investigating their capacities, paybacks, and challenges. The study highlights the technological foundations of AI chatbots, their usage in customer service contexts, and their influence on key performance metrics in e-commerce. Further, the study discusses the primary obstacles that e-commerce organisations have when using chatbots, including concerns about customer trust and data protection. The report concludes by giving insights into future trends and recommendations for e-commerce platforms seeking to fully realise the promise of AI-powered chatbots in boosting consumer interactions using e-commerce chatbots.