Abstract:

In the context rapid digital transformation, Vietnamese SMEs face the challenge of building strong brands that create emotional connections with customers. This study investigates the role of AI Chatbots in enhancing brand positioning and driving consumer behavior among Generation Z. Employing a quantitative approach with PLS-SEM, data were collected from 319 Gen Z respondents. The results indicate that key AI Chatbot functionalities - such as personalization, accuracy, and credibility - significantly influence brand perception. Moreover, customer attitude and satisfaction serve as crucial mediators between Chatbot features and brand image, reinforcing their strategic importance in brand management. Overall, the study confirms 20 out of 25 hypothesized relationships, demonstrating that investing in user- friendly interfaces and data-driven personalization strategies is essential to improve customer experience, satisfaction, and loyalty. Additionally, the findings suggest that SMEs should integrate AI-driven communication tools to optimize brand engagement and build long- term consumer trust. These insights provide valuable implications for businesses seeking to leverage AI Chatbots as a competitive advantage in the evolving digital marketplace.