The Impact of AI-Driven Customer Relationship Management on Sustainable Performance: The Mediating Role of Digital Customer Experience

Abstract

This paper addresses the limited understanding of how Artificial Intelligence–driven Customer Relationship Management (AI-CRM) influences sustainable performance in emerging economies, particularly through the mediating role of digital customer experience. The study aims to examine the effect of AI-CRM on sustainable performance and investigate whether digital customer experience mediates this relationship. AI-CRM is operationalized through predictive and operational analytics, while sustainable performance is measured using the triple bottom line dimensions: economic, environmental, and social. A quantitative, cross-sectional research design was adopted. Data were collected through a structured questionnaire administered to 168 customers of hypermarkets affiliated with the Iraqi Ministry of Trade in Baghdad. The collected data were analyzed using multiple regression and path analysis to test the proposed hypotheses. The findings reveal that AI-CRM has a significant positive effect on both digital customer experience and sustainable performance. Furthermore, digital customer experience partially mediates the relationship between AI-CRM and sustainable performance. The study highlights the importance of integrating AI-driven customer relationship management practices to enhance customer engagement and support sustainability objectives. It contributes to the literature by providing empirical evidence of the interrelationships among AI-CRM, digital customer experience, and sustainable performance in an emerging economy, while offering practical implications for managers and policymakers seeking to leverage artificial intelligence to enhance customer-related outcomes and advance sustainable business practices.