Chatbots utilize AI to improve user interaction by leveraging natural language processing (NLP) techniques, allowing them to understand and respond to user inquiries conversationally. Through machine learning, chatbots can learn from past interactions, improving their ability to provide relevant responses over time. They can handle multiple queries simultaneously, enhancing customer service efficiency. Additionally, chatbots can be integrated across various platforms, offering seamless assistance, thereby improving user engagement while reducing operational costs for businesses.