Explainable and ethical artificial intelligence in customer relationship management: Improving customer experience, value creation, and loyalty
Abstract
The fast development of the artificial intelligence into the customer relationship management systems has offered the businesses unexampled possibilities to improve customers experiences yet posing serious questions of transparency, fairness, and ethical decision-making. The given comprehensive literature review discusses the intersection of explainable AI and ethical considerations in the realm of CRM ecosystems, which involves the core issue of technological progress and responsibility and trust. The paper utilizes PRISMA to ensure a systematic interpretation of the latest trends in research to determine how the organizations can use interpretable machine learning models, transparent algorithm processes and value-oriented AI systems to enhance customer relations without losing ethics. Important results include explainable AI methods like LIME, SHAP, and attention mechanisms as they have a high impact on customer confidence and response to ethical governance standards. The study establishes a direct relationship between operational transparency of AI-driven personalization, AI-driven recommendation systems, and predictive analytics and customer loyalty, lifetime value. Nonetheless, more issues remain in the process of introducing real-time explainability and controlling the bias of algorithms, adhering to the requirements of data privacy, and building culturally adaptable moral systems in a wide variety of markets. This review states the existence of important gaps in longitudinal research studies about the long-term effectiveness of explainable AI in customer retention, limited literature has been investigated on hybrid human-AI collaborative models in CRM, and there is a lack of research to explore quantum computing as a privacy-preserving customer analytics tool.
Full text article
References
[1] Kumar D, Ratten V. Artificial intelligence and family businesses: a systematic literature review. Journal of Family Business Management. 2025 Apr 17;15(2):373-92. https://doi.org/10.1108/JFBM-08-2024-0160
[2] Enholm IM, Papagiannidis E, Mikalef P, Krogstie J. Artificial intelligence and business value: A literature review. Information systems frontiers. 2022 Oct;24(5):1709-34. https://doi.org/10.1007/s10796-021-10186-w
[3] Bolton C, Machová V, Kovacova M, Valaskova K. The power of human-machine collaboration: Artificial intelligence, business automation, and the smart economy. Economics, Management, and Financial Markets. 2018 Dec 1;13(4):51-6. https://doi.org/10.22381/EMFM13420184
[4] Maiti M, Kayal P, Vujko A. A study on ethical implications of artificial intelligence adoption in business: challenges and best practices. Future Business Journal. 2025 Mar 13;11(1):34. https://doi.org/10.1186/s43093-025-00462-5
[5] Brynjolfsson E, Mcafee AN. The business of artificial intelligence. Harvard business review. 2017 Jul 18;7(1):1-2.
[6] Gong Q, Fan D, Bartram T. Integrating artificial intelligence and human resource management: a review and future research agenda. The International Journal of Human Resource Management. 2025 Jan 2;36(1):103-41. https://doi.org/10.1080/09585192.2024.2440065
[7] Zulaikha S, Mohamed H, Kurniawati M, Rusgianto S, Rusmita SA. Customer predictive analytics using artificial intelligence. The Singapore Economic Review. 2025 Jun 6;70(04):1009-20. https://doi.org/10.1142/S0217590820480021
[8] Khan SA, Sheikh AA, Shamsi IR, Yu Z. The implications of artificial intelligence for small and medium-sized enterprises' sustainable development in the areas of blockchain technology, supply chain resilience, and closed-loop supply chains. Sustainability. 2025 Jan 4;17(1):334. https://doi.org/10.3390/su17010334
[9] Naz H, Kashif M. Artificial intelligence and predictive marketing: an ethical framework from managers' perspective. Spanish Journal of Marketing-ESIC. 2025 Jan 2;29(1):22-45. https://doi.org/10.1108/SJME-06-2023-0154
[10] Saxena M, Mishra DK. Artificial intelligence: the way ahead for employee engagement in corporate India. Global Knowledge, Memory and Communication. 2025 Jan 13;74(1/2):111-27. https://doi.org/10.1108/GKMC-09-2022-0215
[11] Ghimire A, Thapa S, Jha AK, Adhikari S, Kumar A. Accelerating business growth with big data and artificial intelligence. In2020 fourth international conference on I-SMAC (IoT in Social, Mobile, Analytics and Cloud)(I-SMAC) 2020 Oct 7 (pp. 441-448). IEEE. https://doi.org/10.1109/I-SMAC49090.2020.9243318
[12] Wright SA, Schultz AE. The rising tide of artificial intelligence and business automation: Developing an ethical framework. Business Horizons. 2018 Nov 1;61(6):823-32. https://doi.org/10.1016/j.bushor.2018.07.001
[13] Soni N, Sharma EK, Singh N, Kapoor A. Impact of artificial intelligence on businesses: from research, innovation, market deployment to future shifts in business models. arXiv preprint arXiv:1905.02092. 2019 May 3.
[14] Pallathadka H, Ramirez-Asis EH, Loli-Poma TP, Kaliyaperumal K, Ventayen RJ, Naved M. Applications of artificial intelligence in business management, e-commerce and finance. Materials Today: Proceedings. 2023 Jan 1;80:2610-3. https://doi.org/10.1016/j.matpr.2021.06.419
[15] Carter D. How real is the impact of artificial intelligence? The business information survey 2018. Business Information Review. 2018 Sep;35(3):99-115. https://doi.org/10.1177/0266382118790150
[16] Sipola J, Saunila M, Ukko J. Adopting artificial intelligence in sustainable business. Journal of Cleaner Production. 2023 Nov 10;426:139197. https://doi.org/10.1016/j.jclepro.2023.139197
[17] Getchell KM, Carradini S, Cardon PW, Fleischmann C, Ma H, Aritz J, Stapp J. Artificial intelligence in business communication: The changing landscape of research and teaching. Business and Professional Communication Quarterly. 2022 Mar;85(1):7-33. https://doi.org/10.1177/23294906221074311
[18] Reim W, Åström J, Eriksson O. Implementation of artificial intelligence (AI): a roadmap for business model innovation. Ai. 2020 May 3;1(2):11. https://doi.org/10.3390/ai1020011
[19] Wang X, Lin X, Shao B. How does artificial intelligence create business agility? Evidence from chatbots. International journal of information management. 2022 Oct 1;66:102535. https://doi.org/10.1016/j.ijinfomgt.2022.102535
[20] Swan M. Blockchain for business: Next-generation enterprise artificial intelligence systems. InAdvances in computers 2018 Jan 1 (Vol. 111, pp. 121-162). Elsevier. https://doi.org/10.1016/bs.adcom.2018.03.013
[21] Sollosy M, McInerney M. Artificial intelligence and business education: What should be taught. The International Journal of Management Education. 2022 Nov 1;20(3):100720. https://doi.org/10.1016/j.ijme.2022.100720
[22] Goralski MA, Tan TK. Artificial intelligence and sustainable development. The International Journal of Management Education. 2020 Mar 1;18(1):100330. https://doi.org/10.1016/j.ijme.2019.100330
[23] William P, Panicker A, Falah A, Hussain A, Shrivastava A, Khan AK. The Emergence of Artificial Intelligence and Machine Learning in Contemporary Business Management. In2023 4th International Conference on Computation, Automation and Knowledge Management (ICCAKM) 2023 Dec 12 (pp. 1-6). IEEE. https://doi.org/10.1109/ICCAKM58659.2023.10449493
[24] Rane NL, Paramesha M, Choudhary SP, Rane J. Artificial intelligence, machine learning, and deep learning for advanced business strategies: a review. Partners Universal International Innovation Journal. 2024 Jun 25;2(3):147-71. https://doi.org/10.2139/ssrn.4835661
[25] Doshi AR, Bell JJ, Mirzayev E, Vanneste BS. Generative artificial intelligence and evaluating strategic decisions. Strategic Management Journal. 2025 Mar;46(3):583-610. https://doi.org/10.1002/smj.3677
[26] Horani OM, Al-Adwan AS, Yaseen H, Hmoud H, Al-Rahmi WM, Alkhalifah A. The critical determinants impacting artificial intelligence adoption at the organizational level. Information Development. 2025 Sep;41(3):1055-79. https://doi.org/10.1177/02666669231166889
[27] Menzies J, Sabert B, Hassan R, Mensah PK. Artificial intelligence for international business: Its use, challenges, and suggestions for future research and practice. Thunderbird International Business Review. 2024 Mar;66(2):185-200. https://doi.org/10.1002/tie.22370
[28] Kulkov I. The role of artificial intelligence in business transformation: A case of pharmaceutical companies. Technology in Society. 2021 Aug 1;66:101629. https://doi.org/10.1016/j.techsoc.2021.101629
[29] Rajagopal NK, Qureshi NI, Durga S, Ramirez Asis EH, Huerta Soto RM, Gupta SK, Deepak S. Future of business culture: An artificial intelligence‐driven digital framework for organization decision‐making process. Complexity. 2022;2022(1):7796507. https://doi.org/10.1155/2022/7796507
[30] Paramesha M, Rane N, Rane J. Big data analytics, artificial intelligence, machine learning, internet of things, and blockchain for enhanced business intelligence. Artificial Intelligence, Machine Learning, Internet of Things, and Blockchain for Enhanced Business Intelligence (June 6, 2024). 2024 Jun 6. https://doi.org/10.2139/ssrn.4855856
[31] Almaraz-López C, Almaraz-Menéndez F, López-Esteban C. Comparative study of the attitudes and perceptions of university students in business administration and management and in education toward artificial intelligence. Education Sciences. 2023 Jun 15;13(6):609. https://doi.org/10.3390/educsci13060609
[32] Haenlein M, Huang MH, Kaplan A. Guest editorial: Business ethics in the era of artificial intelligence. Journal of Business Ethics. 2022 Jul;178(4):867-9. https://doi.org/10.1007/s10551-022-05060-x
[33] Di Vaio A, Palladino R, Hassan R, Escobar O. Artificial intelligence and business models in the sustainable development goals perspective: A systematic literature review. Journal of Business Research. 2020 Dec 1;121:283-314. https://doi.org/10.1016/j.jbusres.2020.08.019
[34] Oldemeyer L, Jede A, Teuteberg F. Investigation of artificial intelligence in SMEs: a systematic review of the state of the art and the main implementation challenges. Management Review Quarterly. 2025 Jun;75(2):1185-227. https://doi.org/10.1007/s11301-024-00405-4
[35] Mumtaz S, Carmichael J, Weiss M, Nimon-Peters A. Ethical use of artificial intelligence based tools in higher education: are future business leaders ready?. Education and Information Technologies. 2025 Apr;30(6):7293-319. https://doi.org/10.1007/s10639-024-13099-8
[36] Wang S, Zhang H. Leveraging generative artificial intelligence for sustainable business model innovation in production systems. International Journal of Production Research. 2025 Apr 2:1-26.
[37] López-Solís O, Luzuriaga-Jaramillo A, Bedoya-Jara M, Naranjo-Santamaría J, Bonilla-Jurado D, Acosta-Vargas P. Effect of generative artificial intelligence on strategic decision-making in entrepreneurial business initiatives: A systematic literature review. Administrative Sciences. 2025 Feb 18;15(2):66. https://doi.org/10.3390/admsci15020066
[38] Loureiro SM, Guerreiro J, Tussyadiah I. Artificial intelligence in business: State of the art and future research agenda. Journal of business research. 2021 May 1;129:911-26. https://doi.org/10.1016/j.jbusres.2020.11.001
[39] Dirican C. The impacts of robotics, artificial intelligence on business and economics. Procedia-social and behavioral sciences. 2015 Jul 3;195:564-73. https://doi.org/10.1016/j.sbspro.2015.06.134
[40] Tingelhoff F, Brugger M, Leimeister JM. A guide for structured literature reviews in business research: The state-of-the-art and how to integrate generative artificial intelligence. Journal of Information Technology. 2025 Mar;40(1):77-99. https://doi.org/10.1177/02683962241304105
[41] Qin C, Zhang L, Cheng Y, Zha R, Shen D, Zhang Q, Chen X, Sun Y, Zhu C, Zhu H, Xiong H. A comprehensive survey of artificial intelligence techniques for talent analytics. Proceedings of the IEEE. 2025 Jun 6. https://doi.org/10.1109/JPROC.2025.3572744
[42] Badghish S, Soomro YA. Artificial intelligence adoption by SMEs to achieve sustainable business performance: application of technology-organization-environment framework. Sustainability. 2024 Feb 24;16(5):1864. https://doi.org/10.3390/su16051864
[43] Hu KH, Chen FH, Hsu MF, Tzeng GH. Governance of artificial intelligence applications in a business audit via a fusion fuzzy multiple rule-based decision-making model. Financial Innovation. 2023 Aug 14;9(1):117. https://doi.org/10.1186/s40854-022-00436-4
[44] Qi B, Shen Y, Xu T. An artificial-intelligence-enabled sustainable supply chain model for B2C E-commerce business in the international trade. Technological forecasting and social change. 2023 Jun 1;191:122491. https://doi.org/10.1016/j.techfore.2023.122491
[45] Upadhyay N, Upadhyay S, Al-Debei MM, Baabdullah AM, Dwivedi YK. The influence of digital entrepreneurship and entrepreneurial orientation on intention of family businesses to adopt artificial intelligence: examining the mediating role of business innovativeness. International Journal of Entrepreneurial Behavior & Research. 2023 Jan 17;29(1):80-115. https://doi.org/10.1108/IJEBR-02-2022-0154
[46] Abdelwahab HR, Rauf A, Chen D. Business students' perceptions of Dutch higher educational institutions in preparing them for artificial intelligence work environments. Industry and Higher Education. 2023 Feb;37(1):22-34. https://doi.org/10.1177/09504222221087614
[47] Bickley SJ, Macintyre A, Torgler B. Artificial intelligence and big data in sustainable entrepreneurship. Journal of Economic Surveys. 2025 Feb;39(1):103-45. https://doi.org/10.1111/joes.12611
[48] Demaidi MN. Artificial intelligence national strategy in a developing country. Ai & Society. 2025 Feb;40(2):423-35. https://doi.org/10.1007/s00146-023-01779-x
[49] Krishnan C, Gupta A, Gupta A, Singh G. Impact of artificial intelligence-based chatbots on customer engagement and business growth. InDeep learning for social media data analytics 2022 Sep 19 (pp. 195-210). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-031-10869-3_11
[50] Saleem I, Al-Breiki NS, Asad M. The nexus of artificial intelligence, frugal innovation and business model innovation to nurture internationalization: A survey of SME's readiness. Journal of Open Innovation: Technology, Market, and Complexity. 2024 Sep 1;10(3):100326. https://doi.org/10.1016/j.joitmc.2024.100326
[51] Met İ, Kabukçu D, Uzunoğulları G, Soyalp Ü, Dakdevir T. Transformation of business model in finance sector with artificial intelligence and robotic process automation. InDigital business strategies in blockchain ecosystems: Transformational design and future of global business 2019 Nov 10 (pp. 3-29). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-030-29739-8_1
[52] Fonseka K, Jaharadak AA, Raman M. Impact of E-commerce adoption on business performance of SMEs in Sri Lanka; moderating role of artificial intelligence. International Journal of Social Economics. 2022 May 16;49(10):1518-31. https://doi.org/10.1108/IJSE-12-2021-0752
[53] Lada S, Chekima B, Karim MR, Fabeil NF, Ayub MS, Amirul SM, Ansar R, Bouteraa M, Fook LM, Zaki HO. Determining factors related to artificial intelligence (AI) adoption among Malaysia's small and medium-sized businesses. Journal of Open Innovation: Technology, Market, and Complexity. 2023 Dec 1;9(4):100144. https://doi.org/10.1016/j.joitmc.2023.100144
[54] Secundo G, Spilotro C, Gast J, Corvello V. The transformative power of artificial intelligence within innovation ecosystems: a review and a conceptual framework. Review of Managerial Science. 2025 Sep;19(9):2697-728. https://doi.org/10.1007/s11846-024-00828-z
[55] Sestino A, De Mauro A. Leveraging artificial intelligence in business: Implications, applications and methods. Technology Analysis & Strategic Management. 2022 Jan 2;34(1):16-29. https://doi.org/10.1080/09537325.2021.1883583
[56] Ruiz-Real JL, Uribe-Toril J, Arriaza Torres JA, de Pablo Valenciano J. Artificial intelligence in business and economics research: Trends and future. Business Economics and Management (JBEM). 2021;22(1):98-117. https://doi.org/10.3846/jbem.2020.13641
[57] Yang S, Hussain M, Ammar Zahid RM, Maqsood US. The role of artificial intelligence in corporate digital strategies: evidence from China. Kybernetes. 2025 Mar 19;54(5):3062-82. https://doi.org/10.1108/K-08-2023-1583
[58] Quan XI, Sanderson J. Understanding the artificial intelligence business ecosystem. IEEE Engineering Management Review. 2018 Nov 20;46(4):22-5. https://doi.org/10.1109/EMR.2018.2882430
[59] Naim A. Role of artificial intelligence in business risk management. American Journal of Business Management, Economics, and Banking. 2022 Jun;1:55-66.
[60] Chen L, Jiang M, Jia F, Liu G. Artificial intelligence adoption in business-to-business marketing: toward a conceptual framework. Journal of Business & Industrial Marketing. 2022 Apr 15;37(5):1025-44. https://doi.org/10.1108/JBIM-09-2020-0448
Authors
Copyright (c) 2026 Ankur Chaudhary, Nitin Liladhar Rane, Ritesh Rastogi, Jayesh Rane (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright (c) 2025 International Journal of Applied Resilience and Sustainability (IJARS) 
This work is licensed under a Creative Commons Attribution 4.0 International License.