The study analyzes the impact of AI-based chatbot on customer satisfaction and its acceptance in Pakistan. The quantitative research design was adopted, and data was collected through a questionnaire. The 140 properly filled questionnaires were included in the study. The data was analyzed using SPSS. It was identified that reliability, understandability, and accuracy are the major elements of AI chatbot that can create an impact on customer satisfaction. Whereas, the majority of people consider the inclusion of AI chatbot ahead of its time. Pakistani society is not willing to accept AI chatbot as there are lingual and technological limitations.

Keywords: AI Chatbots, Customer Satisfaction, Technological Advancements, Pakistani Society.