Utilization of AI-Based Chatbots to Enhance Customer Service in MSME E-Commerce

Abstract

The rapid growth of e-commerce has pushed micro, small, and medium enterprises (MSMEs) to adopt digital technologies to remain competitive. Among emerging innovations, artificial intelligence (AI)-based chatbots have gained significant attention as tools for enhancing customer interaction and service quality. This study explores the utilization of AI chatbots in improving customer service performance among MSMEs operating in the e-commerce sector in Makassar, Indonesia. Using a qualitative descriptive approach, data were collected from 15 MSMEs through semi-structured interviews, participant observation, and document analysis. The findings reveal that chatbot adoption significantly improves service responsiveness by reducing response times from 5–10 minutes to under one minute, enhances operational efficiency by automating routine tasks, and increases customer satisfaction and engagement. However, several challenges remain, including technical limitations, integration costs, and customer resistance to automated communication. The study also highlights the effectiveness of hybrid service models that combine chatbot automation with human support to address complex inquiries. These findings contribute to understanding AI adoption among MSMEs in emerging markets and provide practical insights for businesses seeking to optimize digital customer service strategies. Overall, AI-based chatbots represent a strategic tool for strengthening MSME competitiveness and achieving sustainable growth in the digital era.