Effects of the Ai-Enabled Chatbots on The Customer Satisfaction in The Online Retail

Abstract

This research examines the impact of AI-based chatbots on customer satisfaction in the online retail sector of Erbil, where the demand in e-commerce is on the rise, and more companies use AI to enhance their service delivery. Although it is of interest to the world, there is minimal empirical research in the Kurdistan Region on the characteristics of chatbots and their impact on customer perception. The study looks at the main chatbot attributes, responsiveness, personalization, ease of use, problem-solving, and availability, to establish how they jointly influence satisfaction. The quantitative method was used, with a structured questionnaire that was administered to 200 customers of online retailers in Erbil. The satisfaction and chatbot performance were measured on a 5-point Likert scale. Analysis of data was done using IBM SPSS Statistics 26. Descriptive statistics were used to summarize the demographics and responses of the respondents and the reliability analysis was used to confirm high internal consistency. Regression findings indicated that responsiveness, personalization, and 24/7 availability have a significant and positive impact on customer satisfaction and explained 67 percent of its variance (R 2 = 0.67). The findings show that well-designed chatbots can improve the customer experience and develop loyalty in online shopping. The study advises companies to consider adopting smart, user-friendly chatbots that can provide personalised, efficient and 24-hour support, as opposed to simple automation. In addition to the practical implications of the study to retail firms in emerging economies, the study adds to the academic knowledge base on the use of AI in online businesses, and it has provided empirical data on the use of AI in a developing economy and has strategic implications on how customer engagement and retention can be improved.