Chatbots and AI-based marketing go beyond basic communication by personalising the customer experience. These digital marketing tactics have become the new norm for firms, particularly SMEs in emerging markets. This study, therefore, focuses on the market outcome of chatbot and AI-based marketing, as well as the challenges faced in implementing chatbot and AI-based marketing as a digital marketing communication strategy. This objective was achieved via a review of the literature. This study proposes that, in the implementation of chatbots and AI-based marketing as a digital marketing communication strategy, infrastructural deficits, skills gap, and data privacy concerns are the main challenges faced by SMEs. The study further demonstrates that customer engagement, cost efficiency, and market reach expansion are key market outcome derived by firms that implement chatbot and AI-based marketing. The study suggests that government and private organisations must prioritise investments in digital infrastructure to address connectivity issues faced by SMEs to ensure improved market outcomes.