Use of Chatbots in Customer Service: A Technological Review

Abstract

The merging of chatbots with the operations of the customer service has transformed the way the organizations interact with their customers through 24/7 support in an automated form, prompt response to queries, and affordable modes of communication. Chatbots, fueled by the progress of Artificial Intelligence (AI), Natural Language Processing (NLP), and Machine Learning (ML), are becoming more and more indispensable in improving the customer experience and business efficiency. The paper presents a detailed technology analysis of chatbot solutions in customer service, its development, functionality, and performance in different sectors. It also looks at how conversational AI technologies can be used to create more human-like interfaces and mentions the drawbacks of linguistic ambiguity, issues of privacy with data, and dissatisfaction of the user with the inability to understand the context. The results indicate that the future of the chatbots is in the hybrid systems, which include the use of AI-based automation and human sensitivity to build the relationship and define the new standards of digital communication with the customers.