This study examines the role of chatbots and conversational AI in enhancing customer engagement across digital commerce platforms. Using descriptive research methodology with a sample of 100 respondents, both primary data (structured questionnaires) and secondary data (journals, articles, research papers) were collected and analysed using percentage techniques, bar graphs, and pie charts. The findings reveal that customers highly value 24/7 availability (40%), instant responses (30%), and personalised recommendations (20%) as the key benefits of conversational AI. While chatbots significantly improve customer satisfaction and engagement through reduced response times and consistent communication, a hybrid model — combining AI automation with human interaction — remains essential for handling complex or sensitive customer queries. The study concludes that although conversational AI offers scalable, efficient, and personalised customer service, businesses must balance automation with human touchpoints, invest in advanced NLP capabilities, and prioritise data privacy to build lasting customer trust.