Artificial Intelligence (AI) has significantly transformed customer experience in business by enhancing personalization, automation, and predictive analytics. This study examines the integration, evolution, and strategic implications of AI in customer engagement across various sectors. AI technologies, such as chatbots, machine learning, and natural language processing, have revolutionized customer interactions, improving service quality and satisfaction. However, challenges such as data privacy, ethical considerations, and the need for skilled AI expertise remain. The study emphasizes the importance of ethical AI practices, collaboration between AI specialists and industry experts, and continuous innovation to ensure sustainable growth. Key findings highlight AI's role in driving revenue growth, enhancing customer retention, and reshaping business strategies. The research also identifies gaps in AI applications, particularly in replicating human interaction and ensuring ethical use. Overall, AI is a strategic asset that requires thoughtful integration into business models to maximize its benefits in customer experience.Artificial Intelligence (AI) has significantly transformed customer experience in business by enhancing personalization, automation, and predictive analytics. This study examines the integration, evolution, and strategic implications of AI in customer engagement across various sectors. AI technologies, such as chatbots, machine learning, and natural language processing, have revolutionized customer interactions, improving service quality and satisfaction. However, challenges such as data privacy, ethical considerations, and the need for skilled AI expertise remain. The study emphasizes the importance of ethical AI practices, collaboration between AI specialists and industry experts, and continuous innovation to ensure sustainable growth. Key findings highlight AI's role in driving revenue growth, enhancing customer retention, and reshaping business strategies. The research also identifies gaps in AI applications, particularly in replicating human interaction and ensuring ethical use. Overall, AI is a strategic asset that requires thoughtful integration into business models to maximize its benefits in customer experience.