Industrial applications are increasingly adopting conversational agents (chatbots) for tasks ranging from primitive conversation interfaces to intelligent human assistants. In this emerging field of research, there has been a strong drive towards modelling human-like characteristics and behaviors in chatbots. However, only a limited number of research endeavors have focused on a chatbot for automatic characterization of end-user emotions. In order to address this limitation, we propose an artificial intelligence based cognitive model for emotion awareness in chatbots using Markov chains, word embedding, and Natural Language Processing. The proposed model is able to extract emotions from conversations, detect emotion transitions over time, predict real-time emotions and intelligently profile human participants based on their distinct emotional characteristics. We conducted experiments using a real-world end-user dataset to demonstrate the functionality of the proposed model. Results from experiments confirm the plausibility of this model for emotion awareness in industrial conversational agents.