Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151

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Journal of Open Innovation: Technology, Market,

and Complexity
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market-and-complexity

Integration of AI in CRM: Challenges and guidelines

Cristina Ledro a, *, Anna Nosella a, Ilaria Dalla Pozza b
a
Department of Management and Engineering, University of Padua, Italy
b
IPAG Business School, Paris, France

A R T I C L E I N F O A B S T R A C T

Keywords: The integration of artificial intelligence (AI) in customer relationship management (CRM) holds great potential
AI-CRM integration for enhancing organizational effectiveness. To achieve successful AI-CRM integration, companies must navigate a
Qualitative research landscape filled with challenges and complexities marked by the distinctive nature of CRM processes. However,
Innovation management
both academics and practitioners still face challenges in understanding the organizational and managerial ele­
Challenges
ments crucial for successful AI-CRM integration. This study aims to fill this gap by identifying the challenges
businesses must overcome in the process of AI integration in a CRM context, from the first discover phase to the
final sustain phase. Since the context of AI-CRM integration encompasses expertise in artificial intelligence,
customer relationship management, data science, and business management, we utilize a research approach that
involves qualitative interviews with several actors (managers, consultants and specialists) across these domains
to gain diverse insights into AI-CRM integration challenges and opportunities. We identified eleven specific
challenges associated with AI-powered CRM and uncovered a temporal division of these challenges across the
four phases of AI implementation. Furthermore, we have developed guidelines for addressing them effectively.
The findings contribute to an empirical understanding of AI-CRM integration, offering a long-term perspective on
leveraging AI for customer relationships. This research lays the foundation for exploring the activities and ca­
pabilities required to navigate the challenges of AI-CRM integration and provides essential questions for man­
agers embarking on this journey.

1. Introduction
CRM is a strategic approach that concerns collecting, managing, and
intelligently using data with the support of technology solutions to
develop valuable relationships with key customers and exceptional
customer experience (Payne and Frow, 2005; Boulding et al., 2005;
Rababah, 2011). The next development toward a unique and more
effective CRM is artificial intelligence (Kumar et al., 2020). AI, espe­
cially regarding CRM, involves harnessing machine learning (ML) and
deep learning (DL) techniques to glean insights from data, recognize
patterns, and make decisions with limited human intervention (Kumar
et al., 2020), or even, in the case of DL, to learn from mistakes without
human involvement (Zaki, 2019). Successful companies have effectively
used AI in CRM for customer data analysis, chatbots and virtual assis­
tants, personalized recommendations, sentiment analysis, computer
vision, voice and speech recognition, and predictive analytics (Libai
et al., 2020; Abousaber, 2023; Kumar et al., 2020). Based on a recent
article published in Harvard Business Review (Antonio, 2018), AI
technologies can significantly impact companies’ key areas for example
forecasting, performance management, upselling and cross-selling.
Beyond immediate benefits, AI integration in CRM also holds
long-term strategic implications, enabling companies to adapt and
thrive in an ever-changing market landscape. Understanding and
addressing the challenges associated with this integration are essential
for businesses both to make informed decisions and to prevent tech­
nology investments from being made without adequate awareness of the
organizational and managerial changes required. Currently, the orga­
nizational and managerial elements that should be considered in the
design and execution of these cutting-edge systems within the CRM
context are also not completely understood by practitioners. Uncertain
outcomes, high levels of perceived complexity, and lack of experience
are some reasons why AI integration in CRM is still low (Mishra et al.,
2022). Executives struggle not only with the complexity of the tech­
nology but especially with the organizational and managerial challenges
of integrating AI into established organizational routines. From this
perspective, understanding whether the company is ready for embracing

* Corresponding author.
E-mail addresses: cristina.ledro@unipd.it (C. Ledro), anna.nosella@unipd.it (A. Nosella), i.dalla-pozza@ipag.fr (I. Dalla Pozza).

https://doi.org/10.1016/j.joitmc.2023.100151
Received 21 June 2023; Received in revised form 4 October 2023; Accepted 11 October 2023
Available online 16 October 2023
2199-8531/© 2023 The Author(s). Published by Elsevier Ltd on behalf of Prof JinHyo Joseph Yun. This is an open access article under the CC BY license
(http://creativecommons.org/licenses/by/4.0/).
C. Ledro et al.
this transformation as well as equipping managers with some recom­
mendations to avoid the main pitfalls seem very useful, and the aca­
demic literature has not deeply delved into this topic. In particular, in
the CRM field, there is a clear need for guidelines that can be followed to
handle the challenges and lower the risks associated with AI initiatives
(Reim et al., 2020).
This study contributes to filling this gap, seeking to identify and
tackle the challenges that businesses must overcome along the process of
AI integration in a CRM context from the perspectives of those involved
in this field. Considering that organizations could be at various stages of
AI adoption, the study utilizes the ’four-step AI implementation process’
by Stancombe et al. (2017) as a theoretical lens.
To achieve this objective, our study carried out a qualitative analysis
grounded on several interviews with experts, providers, and managers of
companies who have integrated AI applications in CRM with different
levels of success.
We uncovered several challenges along the four phases of AI inte­
gration and presented real-world examples of organizations that have
successfully navigated those challenges. The results of our study show
that companies should overcome the obstacles of one phase before
moving to the subsequent phase. Finally, some guidelines that might
support managers in their journey of integrating AI in CRM are
provided.
Overall, the study’s findings contribute to the current knowledge and
understanding of AI-powered CRM by providing a comprehensive ex­
amination of the challenges involved in its implementation. The insights
gained from this study help bridge the gap between theory and practice,
offering practical implications for organizations seeking to leverage AI
technologies in their CRM strategies.
2. Key literature review
2.1. AI-powered CRM
The academic community asserts that artificial intelligence repre­
sents the next evolutionary leap toward a more advanced and stream­
lined CRM system (Kumar et al., 2020; Lokuge et al., 2020; Mishra and
Mukherjee, 2019; Vignesh and Vasantha, 2019) and that AI-CRM sys­
tems, driven by ML, DL and other upcoming technologies, will empower
managers to enhance predictive and real-time suggestions by leveraging
extensive data collection (Libai et al., 2020; Mishra and Mukherjee,
2019).
As Ledro et al. (2022) point out, there has been a recent shift in ac­
ademia’s approach to AI-CRM integration. Indeed, instead of narrowly
examining specific technological applications, scholars are now adopt­
ing a broader strategic perspective. This shift prompts discussion on the
advantages and challenges of integrating AI into CRM processes, as well
as the necessary organizational, cultural, and strategic changes. This
shift in perspective, from a technological to a strategic approach, reflects
a growing interest in reevaluating the relationship between technology
and CRM strategy.
Among all the advantages brought by AI integration in CRM scholars
outline the improvement of customer acquisition and retention, churn
minimization among customers (Libai et al., 2020) as well as the in­
crease in customer engagement (Chatterjee et al., 2021). In terms of
customer acquisition, AI seamlessly integrates various data sources,
encompassing user-generated content and Google search data related to
emerging market trends and fresh customer prospects. This integration
serves as a valuable tool for firms, facilitating the right identification of
potential promising clients. Furthermore, AI plays a pivotal role in
nurturing relationships with existing customers through the deployment
of techniques like upselling and cross-selling, ultimately leading to
increased order frequency and prolonged customer engagement (Libai
et al., 2020). Imagine an e-commerce platform that uses AI-powered
recommendation engines. When a customer logs in, the platform ana­
lyzes their past purchase history, browsing behavior, and product
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Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151
preferences. Based on this data, the AI system identifies opportunities for
upselling and cross-selling.
Automating customer segmentation makes it possible to create
personalized marketing messages and target marketing efforts, thus
increasing retention rate and customer engagement as well (Chatterjee
et al., 2021; Huang and Rust, 2021). In addition, AI applications such as
chatbots and virtual assistants increase operational productivity and
process efficiency (Brynjolfsson et al., 2021; Brock and von Wangen­
heim, 2019). AI applications such as predictive analytics and recom­
mendation engines improve decision-making regarding marketing
strategy (Libai et al., 2020), pricing, channel management,
product-service design and development (Schulze-Horn et al., 2020;
Suoniemi et al., 2020), and AI applications such as automated lead
scoring raise process automation to avoid human deficiencies (Chen
et al., 2022).
In summary, these studies collectively underscore the potential of AI-
powered CRM, covering various aspects of AI’s influence and high­
lighting the need for ongoing research in this domain.
2.2. Implementing AI: challenges and CRM specificities
The integration of AI applications into CRM systems represents a
promising avenue for businesses seeking to enhance their customer in­
teractions, streamline operations, and gain a competitive edge (Dwivedi
and Wang, 2022). However, this endeavor is far from being simple, with
a significant rate of failure observed in AI projects across industries
(Bughin et al., 2018; Mishra et al., 2022; Reim et al., 2020).
Previous studies have mainly investigated the challenges companies
face when implementing AI in general (Ångström et al., 2023; Kar et al.,
2021), with only a few recent contributions focused on the B2B mar­
keting context (Chen et al., 2022; Keegan, Dennehy, et al., 2022),
leaving the context of CRM quite unexplored.
A broad challenge faced when dealing with AI adoption pertains to
the technical prerequisites necessary for effective AI utilization. This
encompasses the need for access to extensive, high-quality datasets and
the essential technological infrastructure for processing data, pre­
requisites critical for realizing AI’s full potential (Keegan et al., 2022).
Unlike standalone AI applications, AI within CRM necessitates seamless
integration with existing CRM platforms and databases, and it often
involves complex data environments and minimal disruptions. More­
over, CRM demands a keen focus on scalability and customization re­
quirements (Perna and Baraldi, 2014) which can introduce complexity
in terms of data mapping, synchronization, real-time updates, and
configuration and thus can lead to specific challenges.
As AI systems operate autonomously, the crucial task of defining
precise objectives for AI algorithms comes to the forefront (Keegan et al.,
2022). However, the realm of CRM often involves implicit and
hard-to-quantify goals, posing a significant hurdle. This difficult context
is compounded by the scarcity of domain expert oversight, the problem
of understanding AI algorithms, and the inherent complexity of AI
decision-making. In addition, in the CRM sphere, a close collaboration
between marketing and sales teams is required; AI should serve as a
facilitator in aligning these two functions by providing insights and
recommendations that effectively bridge their operations. Furthermore,
CRM places a premium on understanding customer emotions and sen­
timents, making it necessary for AI systems to recognize and respond to
emotional cues during customer interactions. This emotional dimension
adds an extra layer of complexity to AI models, setting CRM apart from
more straightforward applications.
Transparency and explainability in AI decisions are also mentioned
by the literature as pressing issues (Jobin et al., 2019; Kaplan and
Haenlein, 2019), even though this issue has not been deeply investigated
in the CRM context, which requires an unwavering commitment to
customer data privacy (Kumar et al., 2020) and ethics (van Esch and
Stewart Black, 2021). Indeed, stakeholders often demand insights into
the rationale behind AI-driven decisions, given their direct impact on
C. Ledro et al.
customer relationships.
Finally, resistance to change is a common theme, with a significant
share of companies facing it during AI implementation (Stancombe
et al., 2017). Since CRM often involves close collaboration between
human agents (sales, customer support) and AI, balancing the roles and
responsibilities of humans and AI in these interactions may require a
unique approach.
Recognizing and addressing these distinct challenges are crucial for
the successful integration of AI in CRM systems. However, the literature
has not provided yet a comprehensive framework tailored to the context
of AI-powered CRM. This omission is particularly noteworthy because
the context of AI-powered CRM introduces distinct challenges that may
significantly differ from those encountered in more general AI adoption
or marketing AI adoption scenarios. CRM’s unique characteristics,
including its intense focus on customer relationships, complex data
landscape, planning requirements, emotional considerations, and
ethical responsibilities, create challenges that are distinct from those
encountered in broader contexts. Recognizing and addressing these
distinct challenges are crucial for the successful integration of AI in CRM
systems.
2.3. Understanding the AI implementation process
Before delving into the specific challenges and stages of AI imple­
mentation in CRM, it is important to recognize the theoretical founda­
tion that guides this process.
According to Mariani et al. (2022) and Radhakrishnan and Chatto­
padhyay (2020), the dominant theoretical approaches used to study AI
adoption are Technology, Organization and Environment (TOE) (Tor­
natzky and Fleischer, 1990), Diffusion of Innovation (DOI) (Oliveira and
Martins, 2010), Unified Theory of Acceptance and Use of Technology
(UTAUT) (Venkatesh et al., 2016) and Technology Acceptance Model
(TAM) (Venkatesh, 2000). Many of these theoretical approaches, such as
UTAUT and TAM, primarily focus on individual user acceptance and
adoption of technology (Radhakrishnan and Chattopadhyay, 2020). In
CRM, AI adoption often involves complex organizational structures,
multiple stakeholders, and broader systemic changes, making these
theories less suitable for capturing the comprehensive challenges faced
in CRM. DOI is centered around the innovation itself and how it diffuses
through a population (Radhakrishnan and Chattopadhyay, 2020).
However, it may not fully account for the intricacies of AI adoption in
CRM, as it tends to emphasize the innovation’s attributes and the rate of
its diffusion rather than the organizational and environmental factors
critical for successful AI integration. The TOE framework provides a
more holistic perspective by considering how the adoption of new
technologies is influenced by various factors, related to the technology
itself, the organizational context in which it is used, and the external
environment in which the organization works.
The pathway outlined in Stancombe’s 2017 work for achieving
successful AI implementation closely aligns with the principles of TOE
theory. It recognizes that AI adoption in CRM is not just a matter of
implementing the technology itself but also involves considerations of
how the technology interacts with the organization’s structure, pro­
cesses, and the external environment.
Stancombe et al. (2017)’s process commences with a phase called
Discovery where managers should figure out the vision for the desired
outcomes and explore use cases and technologies needed to implement
them. Subsequently, a Devise phase is initiated, where capabilities are
developed, and pilot projects are put into action. Understanding AI’s
capabilities and limitations is crucial. To minimize resistance to change,
leaders should prioritize transparent communication with employees
and involve them in the process. For instance, Prudential’s Global Head
of AI, Michael Natusch, is implementing a training program to equip
employees with Alexa programming skills, not just to develop AI solu­
tions but to boost their confidence in working with AI. According to
Jonas Albertson, Managing Director of Atlas Copco, the biggest
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Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151
challenge lies in managing change and people, rather than the tech­
nology itself.
In addition to people, technology training, cultural development,
and having access to relevant and adequate data are crucial for AI sys­
tems. Many companies have vast amounts of data, but not always the
specific data needed to gain insights and achieve their objectives. The
key lies in transforming data into relevant information, which enables
organizations to maintain a continuous flow of information that guides
them towards achieving their corporate goals (Latinovic and Chatterjee,
2022).
Devise phase initiatives are later expanded in the Deploy stage.
Governance assumes a crucial role in orchestrating all these efforts,
prioritizing AI projects, and fostering an organizational culture rooted in
AI insights, culminating in continuous transformation and progress in
the final phase, Sustain.
Recognizing and addressing distinct challenges at each stage is vital
for a smooth and successful implementation. It ensures that the AI sys­
tem aligns with organizational goals, technical requirements, and the
human factor.
Ångström et al. (2023) conducted analyses to better understand how
the challenges of AI implementation vary with experience. However,
there remains a significant gap regarding how these challenges may vary
within each stage of the process of implementation of AI in the context of
CRM (Chatterjee et al., 2019). This research gap poses a challenge for
practitioners seeking practical guidance on the seamless integration of
AI into CRM.
3. Methodology
In pursuit of our research objectives, we adopted a qualitative
approach alongside a grounded theory methodology, as outlined by
Strauss and Corbin (2000). This approach allowed us to observe
real-world phenomena, gather valuable insights from relevant stake­
holders, and iteratively collect and analyze data and literature for theory
building (MacInnis et al., 2020). Indeed, Moradi and Dass (2022)
emphasized the importance of conducting a comprehensive analysis
with sizable samples of marketers to gauge their actions concerning the
AI surge.
With this purpose in mind, we developed the protocol (that was
tested with company 0, see Fig. 1) that was used during the interviews;
information collected through the interviews represents the primary
data source to acquire the opinions and experiences of relevant stake­
holders (Foley et al., 2021). The main questions in the protocol were
“Can you describe how the project of AI application in CRM came about
and how it evolved? What were the steps and people involved from the
genesis of the project to its use?” and “What difficulties and problems
did you encounter before, during, and after the integration and how did
you do to solve them?”. Additional questions were posed to gather
further information based on the participants’ responses.
3.1. Sampling strategy
To reveal the complexity of the AI-CRM integration phenomenon
beyond the specific technical application, we considered as the unit of
analysis the integration of an AI application in CRM.
Because we wanted to detect patterns that were not informed by a
particular industry context, we tried to capture a broad range of in­
dustries’ backgrounds. Thus, we applied a purposeful sampling of
maximum variation to follow a replication logic (Yin, 2014), with
respect to the level of success (measured in terms of complete achieve­
ment of AI application goals) and the industry (Coyne, 2018; Patton,
1990).
The sample participants (our unit of observation) had to meet two
selection criteria: (1) are managers who have at least five years of
experience in CRM or related operations, and (2) are directly involved in
managing the integration of one or more AI applications in CRM.
C. Ledro et al.
Fig. 1. Sample and data collection evolution.
We started with selective sampling which allowed us to develop the
conceptual lines that guided theoretical sampling (Coyne, 2018; Patton,
1990). Consequently, we began our research by carefully selecting four
top managers belonging to three different manufacturing and service
companies that have integrated AI in CRM; these managers have been
involved, within their companies, in the integration of one or more AI
applications in CRM achieving different levels of success (see Fig. 1).
As we uncovered new concepts, we expanded our study using a
theoretical sampling approach, as recommended by Homburg et al.
(2017). Therefore, we interviewed an additional set of top managers,
also from the retail sector, totaling ten top managers from nine distinct
companies. Additionally, we engaged six managers from providers or
consultancy firms specializing in AI applications for CRM and two ex­
perts with over two decades of experience in specific topics, including AI
ethics and human-machine relationships to further enlarge our set of
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Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151
information (see Fig. 1).
The ID within each form is composed as follows: the first letter
corresponds to the sample group (C as company, P as provider/consul­
tant, or E as expert), the second letter to the number of the interview
within the group, and the final number to the order of interview.
3.2. Data collection and analysis
Data collection and analysis proceeded in tandem (Foley et al.,
2021), for a total of 22 interviews (see Table 1).
For data analysis, we transcribed the interviews verbatim and
promptly organized these transcriptions, along with written memos, into
a database. Subsequently, we conducted thematic and content analysis
on the interviews, employing codes extracted from ATLAS.ti software, a
specialized tool for qualitative data analysis (see Ghani et al., 2022 and
C. Ledro et al. Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151

Table 1
Sample characteristics.
ID* Type Main industry, specialization Size Start of working with AI Interviewee
in CRM

C00 Company 0 - Test Tech, CRM consultancy 50–200 2018 CRM Project Manager
CA1 Company A Manufacturing 1–50 2019 CRM Manager
CB2 Company B Service 10.000–50.000 2018 Head of RandI Department
CB3 Company B Service 10.000–50.000 2018 Director of Innovation and CX
CC4 Company C Service > 50.000 2016 Head of project, Insurance manager
CD5 Company D Manufacturing 200–1000 2021 Head of project, IT manager
CE6 Company E Service 10.000–50.000 2018 Lead data scientist
CF7 Company F Retail > 50.000 2021 Group Data Lead
CG13 Company G Service > 50.000 2014 Director Center of Excellence AI
CH14 Company H Retail 10.000–50.000 2019 Chief Information Officer
CH15 Company H Retail 10.000–50.000 2019 Chief Data Officer
CI16 Company I Retail 50–200 2018 CRM Manager
CJ20 Company J Service > 50.000 2018 Chief Data Officer
CK21 Company K Retail 50–200 2020 Chief Digital Officer
CL22 Company L Service > 50.000 2018 Data scientist
PA8 Provider/Consultancy Tech, provider of software and technologies for 10.000–50.000 2005 CX Specialist
Company A databases
PB9 Provider/Consultancy Tech, AI development consultancy 1–50 2016 Founder and Independent advisor
Company B
PC10 Provider/Consultancy Tech, AI provider of AI software dedicated to the 50–200 2016 Head of Marketing and Communication
Company C insurance industry
PD11 Provider/Consultancy Tech, AI/ML solutions provider 1–50 2019 Chief Executive Officer
Company D
PE12 Provider/Consultancy Tech, AI transformation consultancy 1–50 2018 Associate Partner
Company E
PF17 Provider/Consultancy Tech, AI and NLA consultancy 200–1000 2008 Chief Technical Officer
Company F
EA18 Expert A - - - HDR of Digital and Artificial Intelligence
in Marketing
EB19 Expert B - - - Head of several AI Business and start-ups

*The ID is composed as follows: the first letter corresponds to the sample group (C as company, P as provider/consultant, or E as expert), the second letter to the number
of the interview within the group, and the final number to the order of interview (as shown in Fig. 2).

Helmy et al., 2020 for similar approaches). We systematically catego­
rized the challenges and allocated them to the specific step of the AI
implementation process where they emerged.
The data analysis consisted of two main steps: the within-analysis,
where each interview was analyzed independently, and the cross-
analysis, which aimed to compare and examine these cases collec­
tively, following the approach outlined by Eisenhardt (1989).
3.2.1. Study’s quality
To establish the quality of this study, we followed the guidelines set
forth by Lincoln and Guba (1985), which outline four parameters for
rigorous inductive research: credibility, transferability, dependability,
and confirmability.
Credibility has been established by employing well-established
methods, analyzing negative cases, and engaging in frequent debrief­
ing sessions (Lincoln and Guba, 1985). During interviews, we followed a
prescribed protocol, encouraging participants to provide examples and
details to improve data accuracy and reduce interpretational errors
(Glaser et al., 1968; Wallendorf and Belk, 1989). Our interview ques­
tions were deliberately framed in a non-directive and unconnected
manner to prevent active listening (Bryman et al., 1990). Furthermore,
in line with previous research (Gupta and Ramachandran, 2021; Malo­
dia et al., 2020), we adopted a data triangulation approach to support
our theory-building process (Lincoln and Guba, 1985; Thorpe and Holt,
2011): during the interviews, the respondents referred to or provided us
with documents relevant to our research. In parallel, we conducted an
autonomous search on public databases to further verify the complete­
ness and accuracy of primary data and to incorporate any neglected
elements, as appropriate. These secondary sources included company
websites, official documents, press articles, public videos, interviews,
and reports.
To ensure data accuracy and reliability, we asked five participants to
review and confirm the accuracy of the data (Lincoln and Guba, 1985).
Transferability has been achieved by explicitly describing the
boundaries of the research (Lincoln and Guba, 1985). We acknowledge
that qualitative research always involves a limited number of partici­
pants, which may limit the diversity of perspectives represented in the
findings. To address this, we included experts, AI providers, and top
managers from different industries to capture a broader range of view­
points. Nevertheless, it is important to note that the sample size may
raise concerns about the representativeness of the participants. There­
fore, purposeful sampling was employed to ensure the inclusion of a
wide range of information. Moreover, it is important to note that the aim
of this qualitative study is not to generalize the findings (Lincoln and
Guba, 1985), but rather to gain a deeper understanding of AI-CRM
integration.
Regarding the dependability of the study, by employing cloud storage
to record all data, efforts were made to minimize errors and biases (Yin,
2014). Achieving perfect replication in qualitative research can be
challenging, especially in this study, given the rapidly evolving nature of
AI technologies, which introduces continuous changes over time
(Lecompte and Goetz, 1982). Replicating a similar study in the future
may be difficult due to changes in both AI technology and integration
processes. Therefore, the reliability of the results may become more
limited as time passes from the completion of this research.
Finally, confirmability has been achieved through data triangulation
and confirmation of results with the participants (Lincoln and Guba,
1985).
3.2.2. Study’s ethics
We have upheld ethical standards by ensuring transparency, confi­
dentiality, secrecy, anonymity, data security, and data privacy
throughout the entire process. Participants were fully informed about
the research’s objectives, procedures, risks, and benefits, with the option
to withdraw without consequences. We prioritized participant privacy,
taking steps to protect their identities and personal information. This

5
C. Ledro et al.
included removing any identifying references from the transcripts and
storing audio recordings offline, deleting them after transcription.
Confidentiality was maintained for specific aspects of the study,
particularly in cases involving sensitive topics.
4. Results
In this section, the challenges along the process of integrating AI
applications in CRM are described using the framework introduced in
Section 2.3.
4.1. Challenges in the discover phase
4.1.1. Maintain a culture of data and customer centricity
Adopting a mindset that values data-driven decision-making and
customer feedback can be a significant challenge for successful AI
integration in CRM. A culture of data and customer listening requires the
design of a path of awareness and acculturation towards AI, data, and
customer centricity. As elucidated by the interviewees, specifically
CH14 and PE12: “CRM means to look, know, and interpret customer data.
And then there are also data of other nature, financial, and so on. The
analytical capabilities of reading and interpreting, maybe even predicting
certain behaviors and phenomena, you need that kind of skills within the
company, and we want them distributed as much as possible in all directions.
The true culture of the data and of customer listening must absolutely be well
rooted within the business direction” (CH14). “Some people (i.e., companies)
just try to be the product owner of the data project, but they do not know what
the specificities of this kind of project are. For example, what is data man­
agement, what is data cleaning, what kind of issues could occur within the
data quality or accessing the data” (PE12).
To make AI operationally effective, the right cultural mindset is
imperative, not only among the management but also among the em­
ployees who will ultimately benefit from and utilize the AI application.
Without this cultural alignment, AI implementation risks either not
materializing at all or, if implemented, offering minimal value addition.
This relates closely to the willingness to embrace, change and
cultivate a learning orientation. Given the inherently uncertain and
ever-evolving nature of AI-CRM integration, the key to success lies in the
ability to think incrementally, prioritize effectively, learn through
hands-on experiences, and adapt continually. To facilitate this, man­
agement must empower individuals with autonomy and trust. In the
words of CA1, an AI-CRM manager in a manufacturing company:
“Wanting to experiment with new things is certainly an enabler, in my
opinion, just as an attitude, as an approach, always looking for something
new that can improve the company in the face of a business need”.
4.1.2. Respect ethical principles
As expected, in AI-powered CRM, ethical considerations are para­
mount. Organizations must address a range of ethical aspects, including
data privacy, safety, fairness, transparency, accountability, and their
social and environmental impact. By adhering to ethical guidelines and
regulations, implementing robust data protection measures, and grant­
ing customers control over their data, organizations can foster trust and
uphold ethical standards in AI-powered CRM.
An interesting consideration that has emerged from the interviews is
that adhering to ethical principles cannot rely solely on compliance with
regulatory frameworks. Instead, ethical considerations must become
ingrained in an organization’s standard operating procedures. This
approach, known as “ethics by design”, entails contemplating ethical
principles from the inception of AI projects and during the Devise and
Deploy stages. It requires the establishment of an ethics committee that
brings together all relevant stakeholders, including customers, business
users, data scientists, developers, and regulatory entities. This commit­
tee collaboratively defines the moral guidelines to follow, striking a
balance between safeguarding customer rights, ensuring data accuracy,
and optimizing algorithm effectiveness. The ethical committee ought to
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Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151
consist of a team that is diverse in terms of discipline, culture, and skills,
bringing together all relevant stakeholders, including customers. As an
expert in digital and AI in Marketing (EA18) highlighted: “The company
should have an ethics committee and the ethics committee is inspired by more
general rules. Through the interdisciplinarity of skills, which also means
acquiring new teamwork within the company, you can co-build the algorithm
and understand what ethical biases there can be”. This is particularly
crucial in CRM because AI biases can significantly impact how the
company understands and interacts with its diverse customer base,
potentially leading to disparities in customer experiences and percep­
tions, trust erosion or legal and regulatory issues. For example, biased
recommendation systems can limit customers’ exposure to certain
products or services based on their demographics or past behaviors,
potentially leading to missed opportunities or discrimination.
4.1.3. Formulate clear, shared, and long-term business goals and related
key performance indicators (KPIs)
Many participants emphasized the challenge of setting clear business
objectives and clarifying expected performance outcomes from the very
beginning. This viewpoint was echoed by the Chief Executive Officer
(CEO) of an AI solution provider (PD11), who stressed: “You need to
know what you want to achieve. It seems simple when I say that, but most of
the time the company wants to create AI, but they do not know what they
want to achieve or what they want to deliver at the end. So, the question you
want to answer is the key. You need to define what you want to deliver, and it
will totally define the data you collect and analyze”.
We observed that organizations pursuing ambitious and demanding
objectives often faced challenges when implementing AI. This viewpoint
was expressed by the Project Manager of a project that failed (CC4), who
commented: “We are a little at a dead end about developing this artificial
intelligence for this because we think it is too complex. I think our ambition is
too challenging. So, we took a very complex process, and we hoped that AI
can help us” (CC4).
To address this challenge effectively, it seems beneficial to perform a
thorough assessment of all possible AI applications, along with their
associated value propositions. This strategy was explained by the Group
Data Lead of a retail company (CF7), who elaborated: “The first thing we
have done is a maturity analysis, so the inventory of all existing potential
applications of AI and we rank our maturity across different domains. Then,
based on this, we identified the domain where we found that we were weaker.
In this domain we looked for the applications with the most impact in terms of
the value” (CF7).
4.2. Challenges in the Devise phase
4.2.1. Change management and business involvement
Ivančić et al. (2019) emphasized the importance of change man­
agement, HR consultation, and educational initiatives in helping em­
ployees to change and foster an AI culture within the company.
Interestingly, our study has revealed that effective change management
involves implementing a gradual approach to change and prioritize AI
solutions that offer clear benefits and improvements in marketing pro­
cesses and outcomes. This approach ensures that resources are used
efficiently and that the changes align with strategic goals. We have also
uncovered a common mistake, which is the lack of early business
involvement. Organizations should not just implement AI for the sake of
adopting the latest technology but should carefully consider where AI
can truly enhance their CRM processes, meet marketers’ needs, improve
their work, and positively affect user interactions with AI applications.
In fact, a key element for a successful integration of AI applications in
CRM is the sponsor who helps acculturate around data and AI and
actively contributes to the development of innovative business use cases.
This role is instrumental in identifying opportunities and extracting
value from AI initiatives. As stated by an AI application provider (PE11):
“The project must have some sponsoring from the top management because
most of the time these kinds of projects use some confidential or restricted
C. Ledro et al.
data, and you must have a good sponsoring from the top management.
Because I have seen many companies trying to launch projects using some
customer data. In the end, they created some scores, and some models, but
none of them were used because it was not a strategic issue of the company, or
the sponsors were not aligned about the fact that they had to create a real
dynamic unique data of CRM”.
4.2.2. Ensure data comprehension, collection, accessibility, monitoring, and
centralization
In CRM, the challenge related to data quality and complexity is
amplified, as it involves personal customer information, transaction
history, preferences, and interactions across various touchpoints.
Data comprehension can be a time-consuming task, yet it serves as a
fundamental prerequisite for comprehending the utility of the data, as
highlighted by the AI-CRM manager of a manufacturing company (CA1):
“The difficulty was to understand which data were useful to the system and
which were either redundant or useless. So, to get here, there was the analysis
work, in which we said why do we have to take these data rather than not take
them”.
IT manager of a manufacturing company (CD5) who withdrew the
project, pointed out that the project’s failure was primarily attributed to
the inability to recognize that the existing customer data were insuffi­
cient to effectively operate the AI application:“(If I could have done
otherwise) I would probably have expanded the data sources immediately, I
would have tried to enrich the data as much as possible because we simply
based the AI application on the (customer) navigation data, but we saw that it
was not enough” (CD5).
Our findings reveal an interesting connection between data collec­
tion issues and user behavior. Users often exhibit reluctance to input
data, may resist sharing it, or make errors during data entry. One
effective strategy to address this challenge is to shift from structured
data to unstructured data, which can be collected more efficiently using
Natural Language Understanding (NLU) algorithms. For instance, users
might hesitate to provide certain details, such as feedback, in structured
forms. They may also be more inclined to share this information natu­
rally in unstructured formats, like text or conversation, making NLU
algorithms a valuable tool for capturing and understanding such data.
Data accessibility and data drift monitoring are additional challenges
in managing data effectively. Data must be readily accessible, clean,
unbiased, non-discriminatory, and reliable. Continuous monitoring of
data is crucial to detect any deviations: “Good data is not only the fact that
the data has no mistakes inside it, but it also means that the data must be
relevant and must be a representation of reality. And in an ever-changing
environment like ours, nowadays, you cannot use data from 2015 to un­
derstand what the main interest of people in terms of new technology could be.
That would not work because it is changed a lot” (PE12). Our research
findings reveal that one common reason for failure is initiating data
governance initiatives without first systematically understanding the
available data capital, assessing data appropriateness and usability,
defining data needs, gathering methods, and clarifying data access
protocols. Data drift monitoring is essential because AI models can drift
over time, leading to unintended consequences such as illegal price
discrimination. Constructing highly dynamic models, analyzing various
scenarios comprehensively, and routinely monitoring the model’s per­
formance are important steps to address this issue.
Prior to implementing AI models, it is valuable to centralize all
customer information to provide a unified, comprehensive, and omni­
channel view of the customer. However, this task comes with challenges,
as a substantial portion of big data often resides outside a company’s
control and ownership.
4.2.3. Transfer the tacit knowledge and build the operating machine
What our research underscores as notably significant is the critical
role of human involvement throughout both the Device phase and the
Deploy phase (human in the loop). From the insights garnered through
the interviews, a salient point emerged: much of the knowledge
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Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151
possessed by marketers and front-end employees remains tacit in nature.
Consequently, a series of strategic actions can facilitate the transfer of
this knowledge from humans to machines. These actions include con­
ducting face-to-face interviews with domain experts, such as marketing
managers, sales managers and front-desk employees, and users to
elucidate the methods of achieving objectives through AI, as interviewee
CG13 well explained: “First you explain to them (employees) what artificial
intelligence is, what it is for, what it does, and how to read the results. Then
you work with them at the table, so that they understand why you are asking
them to transform in the data what they know very well, because otherwise
they will tell you ‘But why are you asking me all these questions?’. They
understand why they have to tell you the information, they understand what
you are trying to get at, and that you are trying to get there together. It seems
like a detail, but it is the fundamental thing (to increase their trust)” (CG13).
Other actions are gathering subjective and experiential knowledge
through voice-based instruments, extracting patterns from AI model
training datasets to identify key variables with significant impact while
eliminating non-impactful variables, and involving front-end employees
and customers in the loop to interactively validate AI model outcomes
and verify the model’s continued effectiveness following human in­
terventions, as stated by interviewee CF7. “We have an intermediary step
where often we share the results of what the algorithm is producing. And they
(users) can give us their feedback, but it is also a lot of meetings because we
need to understand why the algorithm was not pertinent. So, we can correct
and fix it” (CF7). For the customer recommendation model, we do not know
if the personalized recommendation was good or not for the customer. So, we
are looking to incorporate explicit feedback from customers. It is essential to
be able to better assess the performance, and even this can allow to better
train the algorithm” (CF7).
Conversely, actions designed to transfer knowledge from machines
back to humans encompass a multifaceted approach. This involves
outlining a comprehensive pathway for creating awareness and fostering
AI familiarization from the outset. It also entails educating AI applica­
tion users on the value of AI and how to interpret its outcomes, in
addition to hosting regular meetings dedicated to delving into the causes
and ramifications of AI model insights, as affirmed by interviewee CA1:
“We saw behaviors of the AI model that we did not expect, and then we went
to investigate the reasons. And so, we saw that AI had already figured out our
clients’ behaviors and it gave predictions that we expected differently” (CA1).
4.3. Challenges in the Deploy phase
4.3.1. Ownership of the project and alignment of stakeholders
Notably, the insights gleaned from the interviews shed light on
another significant challenge within the context of AI-CRM integration:
project ownership. Our observations revealed that a contributing factor
to the failure of AI projects is the absence of active participation from
key functional areas, as exemplified in this instance (CJ20): “The AI
project for up-selling recommendations was led by the head of the digital
team. And the digital team developed their own solutions, besides the mar­
keting team. The consequence of that was that the tool was not used much
(…), and so when I arrived, I progressively transferred the ownership of this
project to the marketing teams. And, as soon as we did that, the performances
were multiplied by four”.
What becomes notably clear is that AI-CRM integration efforts
should be driven by the business side rather than solely by the IT or data
office. While management might initially assign AI projects to the data
officer, the practical implementation reveals that a more collaborative
and business-centric approach is needed.
Interviewees, in fact, view AI project investments as inherently
riskier compared to traditional Information Technology and Commu­
nication (ITC) investments, primarily because they are analogous to
Research and Development (RandD) ventures. Consequently, prioriti­
zation tends to favor other projects with well-defined objectives, clear
delivery timelines, and budgetary certainties. Unlike conventional ITC
transformations, the costs and both the tangible and intangible benefits
C. Ledro et al.
of AI projects cannot be unequivocally determined at the project’s
inception.
What emerges from these findings is that AI projects, especially those
geared towards enhancing CRM, entail investments encompassing AI-
related data management, human resources, and process enhance­
ments. Therefore, instead of focusing solely on Return on Investment
(ROI), companies should redirect their attention towards internal ad­
vancements such as improved data management, CRM processes opti­
mization, and fostering a culture of learning and growth within the
organization.
4.3.2. Siloed organizational structure and team collaboration
Interviewees unanimously concurred that siloed organizations tend
to impede collaboration and hinder the establishment of connections
between different functional areas. Conversely, the successful integra­
tion of AI in CRM hinges on the formation of an interdisciplinary,
multicultural, and multi-skilled team right from the outset. “(We carried
out) a team renewal, upskilling and reskilling activities. We quickly realized
the difficulty of entering logics, design approaches different to slightly more
traditional projects and, therefore, we met with human resources, and we
decided to create a one team, a team that included both tech and specialist
marketing, CRM, and e-commerce figures” (CH15).
Interdisciplinary and multi-skilled teams draw from diverse well­
springs of knowledge, enabling team members to cultivate a compre­
hensive perspective of the challenges at hand and identify the
operational adjustments that novel applications may necessitate.
Furthermore, inclusive teams encompassing members with varied
backgrounds, genders, nationalities, and cultures, bring forth distinct
viewpoints, which contribute to a more comprehensive understanding
of potential violations of ethical principles.
Additionally, the analysis underscored the importance of having a
facilitator within the team —a person endowed with strong communi­
cation and teamwork skills. This facilitator serves as a bridge builder,
particularly between IT professionals and domain experts, fostering
collaboration and effective information exchange.
4.3.3. Manage complexity and connectivity
This is a major challenge, as AI-powered CRM systems often integrate
a variety of different technologies, data sources, and operational pro­
cesses. This can make it difficult to ensure that all the systems are
working together seamlessly. Companies undergoing AI-CRM trans­
formation projects often grapple with legacy systems as they migrate
towards cloud-based solutions. These organizations also contend with a
multitude of existing integrations, databases, tools, and various touch­
points, resulting in a complex landscape of dialogue between windows
and dashboards. Consequently, integrating AI solutions within an
already intricate IT environment generally presents a significant chal­
lenge. Additionally, introducing another tool for users can sometimes
pose difficulties in terms of adoption.
Effectively managing this complexity necessitates establishing strong
connectivity between disparate systems and ensuring seamless inter­
operability. One strategy to achieve this is the implementation of stan­
dardized interfaces and the adoption of integration frameworks, which
can streamline processes and facilitate seamless communication be­
tween AI applications and CRM systems.
Moreover, the presence of an IT expert within the team is paramount
to ensuring vital aspects of AI-CRM integration. This includes guaran­
teeing data accessibility, managing infrastructure scalability, fostering
agility, and adeptly handling constraints associated with legacy systems.
Such IT proficiency is indispensable for navigating the intricacies and
challenges inherent in the integration process.
Our observations reveal that a viable solution to these challenges
involves the creation of an intuitive AI application that strives to mini­
mize the visibility of the underlying technology. Furthermore, we have
found that the transformation of structured data into unstructured for­
mats, enabling more efficient and automated data gathering, coupled
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Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151
with presenting users with the key factors contributing to outcomes,
contributes to a more transparent and user-friendly solution.
4.4. Challenges in the Sustain phase
4.4.1. Foster user adoption and build trust
The integration of AI into CRM necessitates substantial organiza­
tional changes. Resistance to change and skepticism toward AI tech­
nologies can emerge as significant challenges. To address these
obstacles, organizations should proactively communicate the advan­
tages of AI integration, provide comprehensive training and support for
employees, and cultivate a culture that encourages trust in AI-generated
insights. Transparent communication regarding AI’s role in CRM can
foster trust and facilitate the acceptance of AI-powered solutions.
Our research findings indicate that increasing trust and awareness
around AI necessitates not only comprehensive training on data and AI
from the outset but also weekly meetings to articulate the vision, share
progress, and address problems, thereby ensuring continued engage­
ment of all stakeholders.
Furthermore, our study has identified several strategies for
enhancing user adoption through educational efforts. For instance,
employing A-B testing during validation and testing of the AI model
effectively demonstrates the tangible benefits of AI applications: “For
5–10% of your assets, you do nothing and see if what you predict happens.
You do it for a small percentage that maybe it is not particularly strategic”
(CG13).
Another approach involves assessing users’ knowledge levels during
training, categorizing them as beginners or experts, and tailoring the
interface or content accordingly based on their proficiency. In some
contexts, incentivizing user adoption can be achieved through rewards
calculated based on tool usage.
Additionally, a noteworthy finding is the importance of soliciting
user feedback for continuous improvement: “Having data scientists who
dedicate time to listen to user feedback and adapt the algorithm; develop an
internal helpdesk where, when the user thinks that the results are drifting or
skewing, they ask technical support to the data scientists dedicated to
maintaining the algorithm” (CF7); “have top-down actions (e.g., the sales
manager who says to the seller: explain to me why the prediction is positive or
negative, and if you do not agree why? Did you put all the needed informa­
tion?)” (C00).
4.4.2. Change skillset
Consistent with prior research findings (Rust, 2020), this study
reaffirms that the nurture of AI in CRM necessitates a profound trans­
formation of the skillset required by personnel. Often, there exists a gap
where business professionals lack the knowledge to comprehend the
data at their disposal, while IT and data experts may encounter chal­
lenges in effectively communicating with their business counterparts.
Our results shed light on the specific actions required to change the
skillset that AI-CRM integration demands.
The company should encourage regular meetings and knowledge-
sharing sessions to ensure that both the domain experts (business pro­
fessionals) and the IT and data experts understand each other’s per­
spectives and requirements. Cross-functional teams can work together
on AI-CRM projects, allowing for practical learning experiences. As
stated by the Lead data scientist of a service company (CE6): “We typi­
cally have weekly meetings, SALs, which are weekly work element meetings
with the entire working team (businesspeople, so, for instance, the actuarial
department, the department that handles the auto products, someone from the
CRM team that deals with customers, and us, data scientists, if a model needs
to be built), and this allows us to maintain control over the project. Within the
SAL, we decide what to do each time, and how to address issues. But in
addition to the SALs, our people typically communicate frequently with
businesspeople, make calls, and have meetings. So, there is almost daily
planning with business matters”.
The company should also encourage the design and implementation
C. Ledro et al.
of structured training programs and skill-building initiatives with scal­
ability and flexibility in mind. These programs should cover the tech­
nical aspects of AI and data analysis as well as soft skills like
communication and problem-solving. Training should be ongoing to
keep up with evolving AI technologies. As AI and CRM technologies
evolve, the organization should be agile in adapting to new skill de­
mands. As stated by the CIO of a retail company (CH14): “We adopted an
agile approach, and the entire team embraced agile working methods. Mine
was an entirely new team. Renewal was essential. The e-commerce team
within IT was completely overhauled to address such a transformation. This
was more of an organizational change, a profound renewal of the team, to
make it possible to tackle such a challenge and embrace new technologies with
an open mindset”.
Furthermore, providing incentives and recognition for employees
who actively engage in skill development and contribute to successful
AI-CRM integration can motivate individuals to invest in their skillsets
(CH14): "We offered certifications, programs to learn how to use platforms
with various skill levels." "We provided everyone with the opportunity to
obtain a certification, which, in a way, adds value to our colleagues." “If we
look at the IT area, it covered about 30–40%, and the same goes for the
marketing and e-commerce world.” “We have created a global digital
academy. We aim to train all employees by the end of 2024″.
5. Discussion
By delving into the specificities of CRM, our findings provide valu­
able insights for businesses aiming to navigate the complexities of AI-
CRM integration successfully. This specialized perspective comple­
ments and extends the existing body of literature on AI adoption and
implementation, making our research uniquely valuable for organiza­
tions operating in CRM-intensive industries.
The results confirm the challenges already identified by other au­
thors, such as formulating clear business goals and KPIs (Keegan et al.,
2022), respecting ethical principles (Jobin et al., 2019), managing
complexity (Wilson-Nash et al., 2020) and changes (Ivančić et al., 2019),
data collection and use (Dwivedi et al., 2021), stimulating trust and
awareness around AI (Chen et al., 2022), transferring tacit knowledge
(De Bruyn et al., 2020), and skillset changing (Rust, 2020). However,
some specific challenges related to the peculiarities of CRM context,
emerge from our study. Indeed, CRM is inherently customer-centric, and
our findings highlight the importance of understanding customer emo­
tions and sentiments. This is a unique challenge for AI-powered CRM
systems, as traditional AI applications are not typically designed to
capture and interpret this type of data. A cultural shift toward
data-driven decision-making and customer-centric approaches is
essential for successful AI-CRM integration, as it requires businesses to
collect, store, and analyze large amounts of customer data. However, it
can be difficult to achieve, as many businesses are still stuck in tradi­
tional, siloed ways of working.
Aligning stakeholders and ensuring project ownership are also
crucial challenges in the context of AI-CRM integration. This is because
CRM systems typically involve multiple departments, such as marketing,
sales, and customer service. It is important to get buy-in from all
stakeholders and ensure that everyone is aligned with the goals of the
project.
The data landscape in CRM is also complex due to the extensive
customer data that are collected. This can make it difficult to compre­
hend, collect, use, and monitor data effectively. Businesses need to
develop clear data governance policies and procedures to address these
challenges. AI-powered CRM systems need to be able to seamlessly
communicate and exchange data with other systems and platforms. This
can be a challenge, as many businesses use a variety of different systems.
Businesses need to develop a clear integration strategy to ensure that AI-
CRM systems can work effectively with their existing systems.
Finally, we highlight the challenge of balancing the roles and re­
sponsibilities of humans and AI in CRM interactions. This is an
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Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151
important challenge that businesses need to be aware of to successfully
integrate AI into their CRM systems. On the one hand, AI can be used to
automate tasks and free up human time for more strategic work. On the
other hand, AI is not a replacement for human judgment and empathy.
Businesses need to find a way to strike the right balance between these
two factors.
Overall, the findings demonstrate consistency with the existing
literature on AI, while offering additional insights and nuances specific
to AI-powered CRM.
To better address this, we developed practical guidelines to enhance
the effectiveness of AI-powered CRM systems (see Fig. 2 and Table 2).
Fig. 2 presents a breakdown of the discovered challenges based on the
different stages of AI implementation. It is widely believed that pro­
ceeding to the subsequent phase without fulfilling the requirements in
the current phase raises the risk of failure. In Table 2, we summarized
the practical actions to address the identified challenges and enhance
the effectiveness of AI-powered CRM systems. The presented insights
will pave the way towards a deeper understanding of integrating AI in
CRM settings, and of the specific activities and capabilities required to
overcome the obstacles that are induced by the specific characteristics of
AI-CRM integration.
6. Conclusions
By comparing several successful and unsuccessful cases of integra­
tion of AI in CRM, as well as the opinions of providers and AI experts, we
unveiled the common challenges and guidelines to support companies
along the AI-CRM integration journey. In doing so, this research offers
an empirical understanding of how innovation projects involving the use
of AI in CRM should be designed, implemented, and sustained, adding a
long-term perspective on the usage of AI for customer relationships.
The presented insights will pave the way towards a deeper under­
standing of the specific activities and capabilities required to overcome
the obstacles that companies encounter along the AI-CRM integration
journey. Furthermore, we set out the fundamental questions that man­
agers should ask themselves to navigate the uncertain journey of AI-
CRM integration more effectively.
6.1. Academic implications and areas of future research
Our study provides a more comprehensive overview of the chal­
lenges involved in AI integration in CRM. While existing studies are not
specifically focused on the CRM context, our article not only takes the
CRM perspective but also considers the challenges at all stages of the AI
integration process. This temporal perspective emphasizes the impor­
tance of meeting the prerequisites of each phase before progressing to
the next, in this way enhancing the understanding of the dynamic nature
of AI integration.
The study identifies eleven main challenges specific to AI-powered
CRM. By highlighting these challenges, the findings shed light on the
unique complexities and obstacles that organizations may encounter
when integrating AI into CRM practices. We recognize that the chal­
lenges associated with AI integration can differ depending on the unique
context of each business.
This study also discusses previous research on both AI and CRM
systems and connects these topics to provide novel insights.
In light of the unexplored aspects identified in this study, several
promising areas for future research emerge, offering opportunities for
further investigation and advancements in the field of AI-powered CRM.
These research directions aim to enhance our understanding of the
complexities and implications of integrating AI into customer relation­
ship management. The following areas are suggested for future research:
1) Ethical considerations in AI-driven customer management: Delving
into how companies can implement ethics by design and ethics
C. Ledro et al.
Fig. 2. AI Integration Phases and Associated Challenges in CRM.
monitoring practices with the support of organizational roles and
dynamics.
2) Human-AI collaboration in customer management: Exploring how AI
can be effectively integrated with customer management teams,
considering the roles, decision-making processes, and interactions
between AI systems and human agents to enhance customer
experience.
3) Trust and acceptance of AI in customer management: Investigating
the factors that influence customer trust and acceptance of AI-driven
customer management systems, including factors such as trans­
parency, explainability, and perceived value.
4) Long-term impact and sustainability of AI in customer management:
Assessing the long-term effects of AI integration in customer man­
agement, such as the impact on customer loyalty, customer lifetime
value, and overall business performance, to provide insights into the
sustainability of AI strategies.
In addition, it would be valuable to elaborate on the potential risks
associated with AI integration in CRM.
6.2. Managerial implications
The contribution of this study lies in providing a comprehensive and
specific framework of challenges tailored to the AI-powered CRM
context, offering managers practical guidance for successful integration.
This study incorporates the perspectives of AI experts and providers,
ensuring a well-rounded and informed perspective on this critical sub­
ject. By doing so, it not only contributes to the existing body of knowl­
edge but also offers actionable insights that can aid companies in
designing, implementing, and sustaining AI-driven innovation projects
within their CRM strategies. Furthermore, the study provides guidelines
to address the identified challenges and enhance the successful inte­
gration of AI in CRM. These practical guidelines offer actionable insights
and recommendations for organizations to navigate the complexities
associated with AI-powered CRM.
By understanding the challenges specific to AI-powered CRM, orga­
nizations can make more informed decisions regarding the adoption and
implementation of AI technologies. By being aware of the challenges,
managers might proactively address potential obstacles. Furthermore,
the study’s findings provide valuable insights for organizations in
planning and executing their AI-powered CRM initiatives. The identified
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Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151
challenges specific to AI-powered CRM and practical guidelines might
act as a roadmap for organizations to anticipate and mitigate potential
obstacles. By being aware of these challenges, organizations can develop
strategies and allocate resources to overcome them effectively. This in­
cludes implementing appropriate mechanisms for managing complexity,
change, and ethical concerns, which are crucial for successful AI
integration.
7. Limitations
One limitation of the qualitative grounded theory approach
employed in this study is its potential lack of generalizability (Closs
et al., 2011). Since the focus is on exploring specific contexts or phe­
nomena in-depth, the findings may not be directly applicable to other
industries or settings.
While efforts were made to capture insights from various stake­
holders involved in AI-CRM integration, it is still important to recognize
that the sample size may raise concerns about the representativeness of
the participants. The perspectives and experiences of other stakeholders,
such as customers, regulatory authorities, or frontline employees, may
not have been fully represented in the study.
The qualitative grounded theory approach, particularly when
involving iterative data collection and analysis, can be demanding in
terms of time and resources. In this study, practical limitations may have
constrained the data collection and analysis processes, potentially
affecting the depth and breadth of the research.
Additionally, it is important to highlight that this research is retro­
spective rather than longitudinal, which means it provides insights
based on a snapshot in time rather than tracking changes over an
extended period.
Ethical statement/approval
No applicable because this research paper does not involve the
research on animal or human subjects. The data collected through in­
terviews has been anonymized, and informed consent was obtained from
all interviewees in accordance with ethical research practices.
CRediT authorship contribution statement
Cristina Ledro: Conceptualization, Investigation, Data curation,
C. Ledro et al. Journal of Open Innovation: Technology, Market, and Complexity 9 (2023) 100151

Table 2 Table 2 (continued )

Practical guidelines to facilitate successful AI integration in CRM.
Challenge
Discover phase
Maintain a Culture of Data and
Customer Centricity
Respect Ethical Principles
Formulate clear, shared, and long-term
Business Goals and related KPIs
Devise phase
Change Management and Business
Involvement
Ensure Data Comprehension,
Collection, Accessibility, Monitoring,
and Centralization
Guidelines
• Promote a culture that values data-
driven decision-making and customer
feedbacks.
• Encourage collaboration and
knowledge sharing to leverage
customer insights and address
challenges related to culture, training,
and stakeholder alignment.
• Build diverse, cross-functional teams
fostering seamless coordination and
knowledge sharing.
• Address ethical challenges by
respecting privacy, data security, and
transparency in AI-powered CRM.
• Conduct training programs for data
experts and non-experts to improve
data and AI awareness.
• Create an ethics committee that brings
together all relevant stakeholders
(including customers, business users,
data scientists and developers, and
regulatory entities) and defines the
moral rules to follow, balancing
customers’ rights, data protection and
algorithm effectiveness.
• Develop and adhere to an ethical AI
framework that guides the development
and deployment of AI-powered CRM
systems. This framework should
address issues such as fairness,
accountability, transparency, and pri­
vacy to mitigate potential ethical con­
cerns and ensure the responsible use of
AI technologies
• Define clear and measurable business
goals and KPIs that are aligned with the
organization’s AI-powered CRM
initiatives.
• Perform a thorough assessment of
possible AI applications and their value
propositions.
• Define clear objectives and expected
outcomes from AI.
• Align AI integration with business goals
and establish a clear strategy for top
management.
• Embrace an agile approach to adapt to
changes and manage challenges such as
managing change and stimulating trust
and an agile approach.
• Ensure early involvement of business to
understand how AI will meet their
needs.
• Have a sponsor who helps with
acculturation around data and AI.
• Involve end-users, such as customer
service representatives or marketing
professionals, in the design and devel­
opment process to ensure usability,
user-friendliness, and alignment with
their needs and workflows.
• Comprehend the utility of available
data through analysis to understand
useful vs. redundant data.
• Systematically understand the available
data, assess appropriateness, define
data needs and collection methods.
• Recognize insufficient customer data
and expand data sources by adding
more data points.
• Centralize all customer information to
get a unified view of customers.
Challenge
Transfer the Tacit Knowledge and Build
the Operating Machine
Deploy phase
Ownership of the Project and
Alignment of Stakeholders
Siloed Organizational Structure and
Team Collaboration
Manage Complexity and Connectivity
Sustain phase
Foster User Adoption and Build Trust
Skillset Changing
Writing – original draft, Writing – review & editing. Anna Nosella:
Methodology, Validation, Writing – original draft, Writing – review &
editing. Ilaria Dalla Pozza: Investigation, Validation, Writing – original
draft.
Guidelines
• Ensure data accessibility and integrity
to leverage the quantity and quality of
data.
• Implement data collection mechanisms
and maintain data quality standards.
• Establish a comprehensive data
governance framework to ensure the
quality, integrity, and security of the
data used in AI-powered CRM systems.
• Shift from structured data that are not
entered voluntarily by people to
unstructured that are gathered more
efficiently.
• Continuously monitor the data for
deviations and data drift over time.
• Actively engage customers in AI-
powered CRM processes and collect
feedback for improved AI models and
personalized customer experiences.
• Conduct interviews with domain
experts to understand the achieving
objectives through AI.
• Have humans in the loop, including
front-end employees and customers,
interactively validate the AI model re­
sults and verify that the AI model works
even after the action of the human.
• Encourage stakeholders engagement
and establish clear ownership to align
with AI integration goals.
• Designate business owners for AI
projects rather than IT/data teams.
• Form interdisciplinary teams with
varied skills and backgrounds.
• Foster cross-functional collaboration
and communication channels.
• Provide training and upskilling
opportunities to employees, educating
them on AI technologies and effective
usage for customer engagement and
decision-making.
• Implement standardized interfaces and
integration frameworks.
• Involve IT experts to ensure data
accessibility, scalability, and handling
legacy systems constraints.
• Prioritize user-friendly interfaces and
intuitive workflows in AI-powered CRM
tools to ensure ease of use and adoption.
• Prioritize user-centric design principles
when developing AI-powered CRM
systems.
• Provide training and support to ensure
CRM professionals can effectively
utilize AI features and interpret AI-
generated insights.
• Establish a supportive environment for
continuous learning and
experimentation with AI tools,
including gathering user suggestions,
conducting A/B testing, and adapting
interfaces based on user knowledge
levels.
• Provide ongoing training tailored to
evolving skills for both business and IT
teams.

11
C. Ledro et al.
Declaration of Competing Interest
The authors declare that they have no known competing financial
interests or personal relationships that could have appeared to influence
the work reported in this paper.
Financial acknowledgements
This research is linked to the fund cod. VERB_SID19_01 of the Uni­
versity of Padua. This study was carried out within the PNRR research
activities of the consortium iNEST (Interconnected North-Est Innovation
Ecosystem) funded by the European Union Next-Generation EU (Piano
Nazionale di Ripresa e Resilienza (PNRR) – Missione 4 Componente 2,
Investimento 1.5 – D.D. 1058 23/06/2022, ECS_00000043). This
manuscript reflects only the authors’ views and opinions, neither the
European Union nor the European Commission can be considered
responsible for them.
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