International Journal of Science, Engineering and TechnologyAuthors: Research Scholoar K. Shameer, Associate Professor Dr. G. Jayalakshmi
Abstract: This study investigates the transformative impact of AI-powered chatbots on customer service and retention in the online retail sector in Tamil Nadu, India. As artificial intelligence (AI) technologies advance, businesses are increasingly adopting AI-powered chatbots to enhance customer service experiences and streamline interactions. The research examines how AI-driven chatbots influence customer behaviours such as service satisfaction, retention rates, and overall engagement. Additionally, the study explores the moderating effects of demographic factors like age, gender, and frequency of online shopping. A sample size of 300 respondents was surveyed using a structured questionnaire, and data were analyzed using statistical tools such as regression analysis and t-tests. The findings indicate that AI-powered chatbots have a significant positive effect on customer service satisfaction and retention, with demographic variables serving as key moderators. Based on these results, the study suggests that online retail companies implement tailored chatbot strategies to improve customer engagement and foster stronger retention. The insights gained from this study contribute to the growing body of research on the pivotal role of AI in transforming customer service dynamics in the e-commerce landscape.
