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AI-Powered Virtual Agents in CRM: Revolutionizing Customer Interaction and Service Automation

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  • Giridhar Raj Singh Chowhan

    (Microsoft, USA)

Abstract

This article examines the transformative impact of AI-powered virtual agents on Customer Relationship Management systems. It explores how these sophisticated software entities are fundamentally redefining customer interactions and service automation across industries. It traces the evolution of CRM systems through four distinct generations, culminating in today's AI-driven solutions that leverage natural language processing, machine learning, and sentiment analysis to deliver personalized customer experiences. It details how virtual agents enhance omnichannel engagement, enable intelligent self-service, and deliver proactive assistance that anticipates customer needs. Beyond basic task automation, these systems manage complex processes, optimize service delivery through intelligent routing, and contribute to organizational learning through operational intelligence. The article analyzes implementation considerations including integration requirements, change management strategies, and ethical implications across diverse market contexts. It further explores emerging capabilities in emotional intelligence, augmented reality integration, and autonomous decision-making that will define the future direction of virtual agents in CRM environments.

Suggested Citation

  • Giridhar Raj Singh Chowhan, 2025. "AI-Powered Virtual Agents in CRM: Revolutionizing Customer Interaction and Service Automation," Journal of Computer Science and Technology Studies, Al-Kindi Center for Research and Development, vol. 7(3), pages 245-252, April.
    • Handle: RePEc:alk:jcsts0:v:7:y:2025:i:3:id:9339
    DOI: 10.32996/jcsts.2025.7.3.27
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