THE IMPACT OF AI‑POWERED CRM SYSTEMS ON CUSTOMER ENGAGEMENT AND DECISION‑MAKING IN MODERN ENTERPRISES

Abstract

This paper examines how artificial intelligence (AI) Customer Relationship Management (CRM) systems affect customer interactions and managerial decision-making in today’s business. The survey design was a cross-sectional questionnaire where 200 CRM managers and users in different fields including retail, healthcare, technology, and finance were surveyed. The analysis assessed the impact of the AI characteristics of predictive analytics, personalization, automation, AI chatbots, and data privacy on customer interaction and quality of decision-making. The results have shown that predictive analytics, personalization, and automation have a substantial effect on customer engagement, whereas AI chatbots, even though essential to operational efficiency, did not directly affect engagement. The ethical issues, especially in the area of data privacy, were identified to have a negative impact on customer interaction as well as the decision-making process of the management. The paper has added to the literature by showing the two-fold significance of technological adoption and ethical data practices in AI-based CRM systems. It offers great insights into businesses that want to maximize AI-powered CRM tools without causing the risk of having unclear and unaccountable data usage to build long-term relationships with customers and enhance decision-making cycles.