Brave New World? On AI and the Management of Customer Relationships

Libai Barak , Yakov Bart, Gensler Sonja, Hofacker Charles F., Kaplan Andreas, Kötterheinrich Kim, Kroll Eike Benjamin


Abstract
In light of the emerging discourse on AI systems' effect on society, whose perception swings widely between utopian and dystopian, we conduct herein a critical analysis of how artificial intelligence (AI) affects the essential nature of customer relationship management (CRM). To do so, we survey the AI capabilities that will transform CRM into AI-CRM and examine how the transformation will influence customer acquisition, development, and retention. We highlight in particular how AI-CRM's improving ability to predict customer lifetime value will generate an inexorable rise in implementing adapted treatment of customers, leading to greater customer prioritization and service discrimination in markets. We further consider the consequences for firms and the challenges to regulators.

Keywords
Artificial intelligence; Customer relationships; Customer lifetime value; CRM; Regulation



Publication type
Article in Journal

Peer reviewed
Yes

Publication status
Published

Year
2020

Journal
Journal of Interactive Marketing

Volume
51

Issue
August

Start page
44

End page
56

Pages range
44-56

DOI

Full text