The transformative effects of artificial intelligence (AI) on service efficiency and the use of best practices in service marketing are examined in this study. The authors have given an overview of how AI technologies transform service delivery by enabling automated processes, dynamic pricing strategies, predictive analytics, and personalized customer experiences through an extensive analysis of the literature. Chatbots and virtual assistants powered by artificial intelligence (AI) improve customer service, while sentiment analysis technologies help with reputation management and consumer feedback analysis. Fairness, accountability, and openness are ensured by emphasizing ethical considerations and responsible AI deployment. Furthermore, it is noted that in order to utilize AI entirely in service marketing, interdisciplinary cooperation, and ongoing education are crucial. In addition to addressing ethical issues and the relevance of continual adaptation and collaboration, the chapter captures the value of AI in promoting efficiency, creativity, and customer-centricity in the service industries. This report offers guidance to companies looking to use AI to improve customer happiness and maintain competitiveness in a market that is becoming more digital and data-driven.