Abstract :

AI chatbots have transformed the customer service landscape by providing instant responses, 24/7 availability, and cost-efficient solutions for businesses. Industries such as retail, banking, and healthcare are increasingly adopting AIdriven conversational agents to manage customer inquiries. While these tools enhance operational efficiency, they also spark concerns about their ability to deliver customer satisfaction comparable to human representatives. A critical question arises: How can businesses effectively balance automation with the need for personalized customer interactions?

This paper examines the advantages and limitations of AI chatbots, assessing their impact on operational efficiency and customer satisfaction, and explores strategies for optimizing their use in customer service.

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Keywords :

AI Ethics and Bias in Chatbots, Customer Service Automation, Machine Learning in Customer Support, operational efficiency.

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