The Impact of AI-Enabled Customer Relationship Management on Customer Satisfaction through Customer Engagement in the UAE Ministry of Interior

Abstract

This study examined the impact of artificial intelligence in customer relationship management on customer satisfaction, with customer engagement as a mediating variable, to propose an AI-CRM framework for the Ministry of Interior, United Arab Emirates. The study focused on five AI-enabled CRM factors: predictive analytics, churn prediction and retention tools, chatbots and virtual assistants, personalization, and sentiment analysis. A quantitative approach was adopted, and data were collected from service users through an online questionnaire. Out of 500 questionnaires distributed, 351 valid responses were used for analysis after data screening. The findings revealed that predictive analytics, chatbots and virtual assistants, personalization, and sentiment analysis significantly influenced customer satisfaction. However, churn prediction and retention tools did not have a significant direct effect on customer satisfaction. The results also showed that customer engagement had a significant positive effect on customer satisfaction and significantly mediated the relationship between AI-enabled CRM factors and customer satisfaction. The study concludes that AI in CRM can enhance customer satisfaction when it strengthens customer engagement. Therefore, the proposed AI-CRM framework for the Ministry of Interior, UAE, should place customer engagement at the centre of AI implementation to support responsive, customer-centred, and technology-driven public service delivery.