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Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Data Privacy, Ethics, and the Role of AI in Customer Relationship Management

Data Privacy, Ethics, and the Role of AI in Customer Relationship Management
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Author(s): Ankur Kumar (SLIET, India), Abhinav Sharma (SLIET, India), Sanjay Dhanka (SLIET, India), Yograj Bist (Graphic Era University, Dehradun, India), Surita Maini (SLIET, India)and Priya Bhatnagar (Aryabhatta College, Delhi, India)
Copyright: 2025
Pages: 36
Source title: Demystifying Emotion AI, Robotics AI, and Sentiment Analysis in Customer Relationship Management
Source Author(s)/Editor(s): Fazla Rabby (Stanford Institute of Management and Technology, Australia), Nasim Ahmed (The University of Sydney, Australia), Amandeep Sehmi (Canterbury Institute of Management, Australia), Rohit Bansal (Rockford College, Sydney, Australia)and Nishita Pruthi (Asian School of Business, India)
DOI: 10.4018/979-8-3373-1867-7.ch013

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Abstract

AI integration in CRM systems has transformed customer interactions, offering personalized experiences and improving service efficiency. However, it raises concerns about data privacy and ethics, especially as AI handles sensitive consumer data. Compliance with privacy regulations like GDPR and CCPA is essential. Ethical issues include algorithmic bias, data ownership, transparency, and informed consent. Businesses must adopt privacy-by-design principles, ensure fairness in AI models, and prioritize transparency in data practices. Clear communication and explicit consent are crucial. By adopting ethical AI frameworks, conducting audits, and ensuring data security, businesses can build trust, mitigate risks, and align with legal and ethical standards, positioning themselves as responsible leaders in the digital age.

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