This study mainly encompasses investigating “The Impact of AI-powered Chatbots on Consumer Purchase Decisions in E-Commerce” and aims to understand the ways technology based on the chatbot makes an impact on the behaviour of the user and even decision-making as well as overall satisfaction level within the digital environment in the case of the retail industry. This study aims to investigate how consumers view and use “AI chatbots” in “e-commerce”, with a focus on how they influence customer choices. Having a better understanding of these effects will help “e-commerce companies” improve chatbot functionality, enhance customer satisfaction, and increase sales success through more intelligent automation. It mainly adopts the “mixed-method approach” which makes an effective combination of qualitative and even quantitative techniques to make sure about an effective understanding of the case of the “research topic”. The findings evaluated that 5% of the customers have interacted with the “AI-powered chatbot”, where 53% stated their experience was good. Therefore, it stated the effective practices of this technology to positively influence buying behaviours. However, at the same time, it is essential to focus on issues like privacy, functionality, data security and many more to enhance the overall satisfaction level