Over the last decade, retailing has been shifted to online eras of selling. And in order toidentify the needs of customers companies are using several tools and AI is one of them.AI is used as most prominent and most reliable tool to find out the needs andrequirements of the customers.This thesis will also try to find out the gaps which are not specified or developed inprevious researches like how AI is being used in retailing effectively and how it is beingapplied in retailing for customer segmentation and customer satisfaction.This draft will try to find out the solutions mostly by using qualitative data. And will tryto find out the best possible way to use AI in retailing.This thesis will also try to find out the rolls which chatboat assistance is playing andwill also try to find out how chatboat assistance is working and how it is trying to findout the needs and requirements of the consumers.After reading this paper draft readers will come to know, how AI is changing theconcept of retail marketing with extended customer support and how customers arebeing segmented with the help of AI.This draft will be helpful for the new entities entering in Digital marketing. Afterreading this draft they will come to know the concept of AI in retailing with targetcustomer base work.