A Study on Perception Towards AI-Based Chat Bots in Insurance Sector in Amravati City

ABSTRACT The rapid adoption of Artificial Intelligence (AI) technologies has transformed customer service practices in various industries, particularly within the insurance sector, where AI-based chatbots are increasingly used to handle policy inquiries, claims processing, and general customer support. Despite these advancements, limited research has been conducted on how insured individuals perceive such AI-driven tools in local Indian contexts. This study aims to investigate the perception of insurance customers in Amravati city towards AI-based chatbots, focusing on key factors such as ease of use, perceived usefulness, trust, responsiveness, and overall satisfaction. Primary data were collected through structured questionnaires administered to a representative sample of policyholders in Amravati. The study analyzes customer attitudes toward chatbot interactions and assesses barriers and facilitators influencing adoption. Findings indicate a generally positive attitude toward the convenience and efficiency of chatbots, but concerns related to trust, complexity of insurance needs, and preference for human support persist. Insights from this research offer practical implications for insurance companies seeking to improve chatbot design and customer engagement strategies tailored to regional customer expectations. The study contributes to the broader understanding of AI acceptance in service delivery, aligning with global research on technology acceptance models while highlighting localized user perspectives.