THE IMPACT OF AI AND CHATBOTS ON CUSTOMER RELATIONSHIP MANAGEMENT IN PRIVATE SECTOR BANKS

Abstract

This research explores the transformative impact of Artificial Intelligence (AI) and chatbot technologies in reshaping Customer Relationship Management (CRM) within the private banking sector. As the financial industry increasingly adopts AI-driven solutions to enhance customer experiences, this study delves into the specific impacts, challenges, and opportunities presented by the integration of AI and chatbots in CRM strategies. The study employs a mixed-methods approach, combining qualitative interviews with key stakeholders in private banking institutions and quantitative analysis of customer feedback and interaction data.

Through these methods, it investigates the effectiveness of AI-driven chatbots in handling customer inquiries, personalizing services, and augmenting the overall CRM landscape. Initial findings indicate significant improvements in customer engagement, satisfaction, and operational efficiencies resulting from the implementation of AI-driven chatbots. However, challenges such as customer acceptance, privacy concerns, and the need for seamless integration across various banking platforms are identified as crucial areas for further exploration. By analysing the evolving landscape of CRM in private banking facilitated by AI and chatbots, this research contributes valuable insights to industry practitioners, policymakers, and scholars. Recommendations stemming from this study aim to guide the strategic utilization of AI technologies to optimize customer interactions and strengthen relationships within the private banking sector.