The Impact of Artificial Intelligence (AI) on Banking Operations and Customer Service

Abstract

The use of Artificial Intelligence (AI) has brought about a revolution in the banking industry because it enhances the efficiency of the process and it has altered how customers are served. The paper will discuss the use of AI in banking operations and customer service as it relates to efficiency, accuracy, personalization, and client satisfaction. The questionnaire was administered in structured questionnaire and to a sample of 385 respondents who are the customers of the bank. Statistical tools, correlation, and regression, were employed to analyze the sufficient effects of AI-enabled services on operational efficiency, decision making skills and customer satisfaction. Upon analysis it was discovered that, The implementation of AI has a strong positive influence on the performance of banks and decision-making abilities. Continuing with the analysis, it was discovered that the customer satisfaction remained unchanged with the introduction of the AI among the banks. The paper highlights how banks should strive to engage in a moderated practice that integrates technological advancement and human intervention in a bid to introduce trust and inclusivity. The study contributes to the growing literature because it provides objective data on the potential impact of AI on the banking sector in the Indian market. Further research may be premised on the expansion of the sample size, longitudinal research and comparison across regions to gain more understanding regarding the evolving customer expectations.