THE ROLE OF ARTIFICIAL INTELLIGENCE-POWERED CHATBOTS AS A MARKETING TOOL IN U.S. BANKING: ENHANCING CUSTOMER SATISFACTION AND SERVICE EFFICIENCY

The integration of artificial intelligence (AI)-powered chatbots into the U.S. banking industry has transformed the way financial institutions engage with customers and deliver services, offering a scalable, intelligent alternative to traditional service channels. This study investigates the strategic role of AI chatbots not only as service automation tools but also as instruments of digital marketing aimed at enhancing customer satisfaction, promoting financial products, and improving operational efficiency. Utilizing a mixed-methods research design, the study combines quantitative data from a structured survey of 400 banking customers with qualitative insights derived from in-depth interviews with 20 banking professionals. Findings indicate that chatbot responsiveness, 24/7 availability, and personalization significantly influence customer satisfaction, with over 72% of users reporting favorable experiences due to fast, accessible service. Chatbots were also shown to be effective in delivering context-aware product recommendations, with 58% of respondents recalling promotional content and 31% acting on these suggestions—demonstrating chatbots’ capacity to function as real-time marketing agents. Moreover, operational cost analyses revealed that chatbot deployment led to a 30–35% reduction in call center volume and reduced average service costs per interaction, affirming their value in cost optimization strategies. The study also highlights limitations, including concerns related to data transparency, interpretative accuracy, and trust, especially among older and less digitally adept users. However, institutions that implemented hybrid support models and emphasized data ethics achieved higher levels of customer trust and satisfaction. The research aligns with and extends existing literature by framing chatbots as integral components of customer experience management, digital personalization, and strategic marketing in modern banking. Ultimately, AI chatbots are not only redefining how services are delivered but also reshaping the strategic landscape of customer engagement and brand communication in the competitive and evolving digital financial ecosystem.