The role of generative artificial intelligence (GAI) in customer personalisation (CP) development in SMEs: a theoretical framework and research propositions

Abstract

Based on the dynamic capabilities (DC) theory, the aim of this study is to investigate the contribution of generative artificial intelligence (GAI) to the development of customer personalisation (CP) within business organisations, particularly SMEs. This paper also explores how the function of GAI in the development of CP is supported by technological advancements like deep learning (DL), smart data (SD), and the Internet of Things (IoT). Using a theoretical framework based on DC theory and an analysis of the literature on GAI, DL, SD, IoT, and CP, the relationship between GAI and CP is theoretically studied. The dependent variable in this theoretical framework is CP, and the independent variable is GAI. Furthermore, while DL and SD just mediate the connection between GAI and CP, IoT moderates the relationship between GAI and SD. Figure 1 presents the theoretical framework and research propositions. On the basis of the constructs in this study, research propositions were developed and discussed. Eight significant research propositions on the relationship between GAI and CP development were developed using the theoretical framework used in this study. According to the suggested theoretical framework and research propositions, context-oriented CP can be created by GAI using DL and SD in conjunction with IoT when high-level customer attributes are retrieved in a structured, accurate, and real-time manner. Additionally, it results in important marketing outcomes including interactive marketing, value co-creation, and consumer loyalty. This study develops a theoretical framework and research propositions that theorise the relationship between GAI and CP which is rooted in literature and also based on DC perspective. The mediating roles of DL and SD on the relationship between GAI and CP, and the moderating role of IoT on the relationship between GAI and SD, provide support to GAI in the development of CP. This study also provides insight into SMEs’ adoption of GAI to generate context-oriented CP that may impact on their marketing development in areas such as interactive marketing, value co-creation, better targeting and customer loyalty.Fig. 1Theoretical framework of the role of GAI in CP development. Source: Author’s own work