Effectiveness of Chatbots in Enhancing Customer Engagement: An Empirical and Psychological Perspective

Abstract

The rapid advancement of Artificial Intelligence (AI) has transformed digital customer service through the widespread adoption of chatbots. These AI-powered conversational agents now serve as front-line service representatives for many organizations across banking, e-commerce, healthcare, and hospitality sectors. This study investigates the effectiveness of chatbots in enhancing customer engagement by examining the psychological, functional, and experiential dimensions of human–chatbot interaction. Drawing on the Technology Acceptance Model (TAM), Service-Dominant Logic, and Engagement Theory, the research proposes a comprehensive framework linking chatbot attributes (responsiveness, personalization, informativeness, and social presence) to customer engagement outcomes (cognitive, emotional, and behavioral). A survey-based study of 452 active digital service users was conducted, and Structural Equation Modeling (SEM) was applied. The findings reveal that responsiveness and perceived social presence are the strongest predictors of customer engagement, while engagement significantly drives satisfaction, trust, and repurchase intention. The study provides valuable theoretical insights and actionable implications for organizations deploying conversational AI.