Impact of AI Powered Chatbots on Customer Relationship Management in E-commerce

This paper examines how AI-driven chatbots have influenced Customer Relationship Management (CRM) in the e-commerce field. Amid the high demand of instant and personalized digital interaction, AI-powered chatbots are transforming customer-business communication ways and retention. The article explores the effect of major chatbot factors, including the quality of interaction, personalization, perceived usefulness, anthropomorphism, and service quality on customer satisfaction, trust, engagement, and brand loyalty. These technologies are efficient in their operations and assist real-time support, yet their effectiveness is highly associated with the acceptance of user perception of authenticity, usefulness, and risk.This research applies a conceptual framework, in which the main question is how chatbot attributes and customer experience are connected to CRM outcomes, and the moderating factors are variations in ethical issues, privacy of the data, and perceived risk. The results indicate the role chatbots play on customer experiences both positively and negatively; in addition to improving the decision-making process and relieving stress, there may also emerge customer confusion and abandonment due to bad design. The study notes the existing gaps in the literature, including omission of the long-term impact, cultural crossings and incorporation in smaller e-commerce entrepreneurial ventures. Overall, the research concludes that there should be ethical design, transparency, and moderate automation to use AI chatbots as actionable in the CRM framework.