Authors: Neha Kulkarni, Ritesh Bansal, Farhan Qureshi
Abstract: Artificial Intelligence (AI) has become a transformative technology in the service sector, enabling automation of routine, cognitive, and customer-facing processes. Service industries such as banking, healthcare, retail, hospitality, education, and logistics are increasingly integrating AI-driven systems including chatbots, robotic process automation (RPA), recommendation engines, predictive analytics, and intelligent scheduling tools. These technologies help firms to improve efficiency, reduce operational cost, enhance service quality, and provide personalized customer experiences. However, AIdriven automation also creates challenges related to employment displacement, ethical risks, algorithmic bias, and data privacy. This review paper examines the concept, drivers, applications, benefits, and challenges of AI-based automation in service industries. It also analyzes future trends and strategic implications for organizations and policymakers. The study concludes that AI automation is not merely a technological upgrade but a structural transformation of service delivery models, requiring workforce reskilling and governance frameworks to ensure inclusive and responsible adoption.
Keywords: Artificial Intelligence, Service Automation, Digital Transformation, Service Industries, Robotic Process Automation, Customer Experience
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