How AI is Changing Customer Service: A Review of Chatbots and Virtual Assistants

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@article{1711734,
      author = {Dr. Usha Rani},
      title = {How AI is Changing Customer Service: A Review of Chatbots and Virtual Assistants},
      journal = {Iconic Research And Engineering Journals},
      year = {2025},
      volume = {9},
      number = {5},
      pages = {445-456},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1711734.pdf},
      abstract = {As customer expectations continue to evolve, businesses are increasingly turning to artificial intelligence (AI) to reshape how they deliver service and support. This review explores how AI technologies such as chatbots and virtual assistants are playing a central role in streamlining customer interactions and offering faster, more personalized experiences. This review paper gives an insight of the evolution of the chatbots and virtual assistants, along with comparison between different chatbots available in market. This paper also explores the Indian market size which is being controlled by these tools and their future trend .These tools rely on advances in natural language processing (NLP), machine learning (ML), and speech recognition so as to mimic human conversation and enhance user satisfaction. The paper outlines the advantages of using AI in customer service, including round-the-clock availability, improved efficiency, and scalable service delivery. It also critically examines limitations, such as the absence of emotional intelligence, difficulty with complex queries, and the potential risks of over-reliance on automation. Emerging developments like multilingual and emotion-aware bots, AR integration, and the future influence of quantum computing are explored.The review concludes by suggesting that AI should be adopted responsibly, with a balanced approach that combines human judgment with the speed and efficiency of technology.},
      keywords = {Artificial Intelligence, Customer Service, Chatbots, Virtual Assistants, NLP, Automation},
      month = {November},
      doi = {https://doi.org/10.64388/IREV9I5-1711734}
  }