This review paper examines the integration of AI chatbots in small and medium-sized enterprise (SME) marketing platforms, focusing on their impact on customer interaction, service efficiency, and future implications. AI chatbots, powered by advancements in natural language processing and machine learning, have revolutionized customer service by automating routine tasks, providing 24/7 availability, and personalizing interactions based on user data. The paper explores historical developments, current trends, and applications of chatbots in SMEs, highlighting benefits such as cost efficiency and improved service processes. Furthermore, it discusses emerging technologies in chatbot development and outlines long-term benefits for SMEs, including enhanced customer satisfaction and operational efficiencies. Practical recommendations for SMEs considering chatbot integration are provided to optimize implementation and leverage this technology effectively in their marketing strategies. Keywords: AI Chatbots, SME Marketing, Customer Interaction, Service Efficiency, Automation, Future Trends.