Artificial Intelligence Trends and Developments in Indian Public Sector Banks: A Customer-Centric Perspective.

Abstract

As technological advancements in artificial intelligence continue to evolve, public sector banks in India are increasingly utilizing AI in green banking to enhance consumer experiences and optimize operational efficiency. This paper analyses trends and advancements in artificial intelligence in the public sector banking industry in India, contributing to environmental governance, improved operational efficiency, service enhancement, and the promotion of sustainable practices among banking institutions in India. This study employs a quantitative research design, utilizing a structured survey to collect data from 196 respondents across 12 public sector banks in India, strengthened by an extensive trend analysis from 2019 to 2025. The study employs a mixed-methods approach, specifically the relative importance index, incorporating secondary data analysis, case studies of leading public sector banks, and customer interviews to assess the influence of AI on green banking initiatives and their social implications, emphasizing environmental sustainability and user acceptance. The study indicates that respondents acknowledge that AI significantly improves green banking initiatives by increasing efficiency and reducing environmental impact. The study paper demonstrates the potential applications of AI in the banking sector. The effectiveness of AI in banking services is evaluated based on consumer preference. The findings indicate that customers believe artificial intelligence enhances banking services and significantly improves data security and fraud prevention through sophisticated monitoring and real-time analysis.