REDEFINING CUSTOMER RELATIONSHIP MANAGEMENT IN THE AGE OF ARTIFICIAL INTELLIGENCE

Abstract

This study examines the impact of artificial intelligence (AI) on customer relationship management (CRM) and its implications for customer satisfaction, loyalty, and retention in contemporary business environments. Drawing on an extensive review of prior literature and supported by empirical evidence, the research adopts a quantitative approach using primary data collected through a structured questionnaire administered to 101 respondents. Statistical analyses were conducted using SPSS, including descriptive analysis, reliability and validity testing, factor analysis, correlation, and regression analysis. The findings reveal a strong and statistically significant positive relationship between AI adoption and CRM effectiveness, indicating that AI-driven tools such as predictive analytics, personalization algorithms, and automated customer interactions substantially enhance CRM performance. The results further demonstrate high internal consistency and construct validity, with AI explaining nearly half of the variance in CRM outcomes. However, the study also highlights critical challenges associated with AI integration, including concerns related to data privacy, ethical decision-making, loss of human touch, and organizational resistance. By emphasizing the need to balance technological efficiency with human empathy and transparency, this research contributes to the growing body of knowledge on AI-enabled CRM. The study offers practical insights for managers and policymakers seeking to leverage AI strategically to strengthen customer relationships while safeguarding trust and long-term relational value.