Artificial Intelligence and Customer Relationship Management

Abstract

In the new digital era as it is formed by the European digital strategy, the explosion of e-commerce and related technologies has led to the formation of tremendous volumes of customer data that could be exploited in a variety of ways. Customer relationship management (CRM) systems can now exploit these data sets to map consumers' behaviour more effectively. As social media and artificial intelligence widened their penetration, firms' interest shifted to chatbots in order to serve their customers' needs. Nowadays, CRM and bots are developed in a parallel way. With the help of these virtual personal assistants, CRM establishes a virtual relationship with consumers. However, the extended collection and use of personal data under this scope may give rise to ethical and legal issues. In this article, the term CRM is defined, followed by an analysis of the way chatbots support CRM systems. In the second part, the legal context of chatbot use will be highlighted in an attempt to investigate whether there are personal data protection issues and whether certain rights or ethical rules are somehow violated. The draft AI Regulation, in combination with the provisions of GDPR and e-Privacy Directive, offers a significant background for our study. The article concludes by demonstrating the use of chatbots as an inherent part of the new digital era and lays special emphasis on the term 'transparency', which seems to penetrate the lawfulness of their use and guarantee our privacy.