The rapid adoption of chatbot technology in customer service has prompted the need to explore its purpose of adoption and satisfaction. This study aims to investigate the motivations behind chatbot adoption, the challenges encountered, and the resulting effects on customer satisfaction. A mixed-methods approach was employed, combining qualitative interviews and a quantitative survey of 120 respondents in Nagercoil City. The findings reveal that productivity is the primary driver for chatbot adoption, with users appreciating the 24/7 availability, instant responses, and personalized assistance. However, challenges such as technical limitations, user acceptance issues, and a lack of emotional understanding were identified. The study concludes that while chatbots offer numerous benefits, their effectiveness relies on critical factors such as design quality, natural language processing capabilities, and adept handling of diverse queries. The findings provide valuable insights for businesses seeking to leverage chatbots effectively to enhance customer engagement and satisfaction.