Perceptions of Banking Professionals Toward Artificial Intelligence in Non-Performing Asset Management: A Cross-Sectional Survey Study from the Indian Banking Sector

Abstract

Indian banking sector has not yet recovered from issue of increasing Non-Performing Assets (NPAs), specifically in the Public Sector Banks (PSBs). Nowadays, the AI (artificial intelligence) is introduced as the viable instrument for the early risk identification, loan rehabilitation, customer engagement, and operational cost reduction. Inspite of the increasing technological investment, attitudinal readiness of the frontline banking professionals — whose acceptance is crucial for the better AI deployment were not thoroughly studied. Also, the problem of NPAs presented the major challenges in financial sector, which affects the stability & profitability of the financial institutions, in the world.  Hence, this study conducted the cross-sectional quantitative survey among the recruited 150 banking professionals from public, cooperative and private, Indian banks. This study used the purposive sampling method. Finally, the study findings indicates that the sustainable AI adoption in Indian banking needs the simultaneous attention to the data infrastructure, privacy governance, & the institutional trust-building rather than the technological capability.