Impact of AI on Customer Relationship Management

This research note discusses the role of artificial intelligence (AI) in transforming customer relationship management (CRM) systems. It outlines the decline in CRM return on investment (ROI) over the past decade and highlights how generative AI and large language models (LLMs) can address this issue. The document presents the shift from traditional CRM systems to AI-enabled platforms that enhance operational efficiency, customer engagement, and overall ROI. It details the benefits observed in sales, service, and marketing through AI integration, including improved productivity and faster response times. The note also identifies best practices for organizations to successfully implement AI in CRM, such as defining clear objectives, ensuring data quality, integrating human oversight, and investing in employee training. Looking ahead, the research emphasizes that AI will be a critical driver of value in CRM, reshaping the competitive landscape and setting new standards for performance and adaptability in the market.