An Empirical Study on the Integration of Artificial Intelligence in Public Sector Banks in India: Impact on Efficiency and Customer Experience
DOI:
https://doi.org/10.66635/ram1nq59Keywords:
climate risk, banking stability, Basel III, capital adequacy, climate finance, prudential regulation, Indian commercial banks, climate-adjusted risk-weighted assets, CABRFAbstract
The incorporation of AI is now seen as an influential factor in the banks that influences banks operations and customer service. This paper attempts to identify the impact of AI integration on operational efficiency and customer experience in Indian Public Sector Banks. Due to the rise in digitalization and the emergence of new technologies, such institutions as the “State Bank of India” and “Punjab National Bank” incorporate AI in their banking operations such as chatbot services, predictive analysis, and automation.
An exploratory research is used for analyzing the influence of AI integration in Indian Public Sector Banks on the efficiency of operations and customer experience. Primary data obtained via a questionnaire based on the five-point Likert scale were utilized and subjected to analysis based on Cronbach’s Alpha, regression analysis, and correlation.
The research outcome revealed that the implementation of AI technologies improves the operations as well as the customer experience in public banks, since it helps to reduce processing time and errors and increase optimization. Moreover, AI improves customer experience by delivering fast services, being responsive, and offering personalized banking services. This research study is beneficial as it focused on the AI integration in PSBs in India.
References
1. Bhattacharya, C., & Sinha, M. (2022). The Role of Artificial Intelligence in Banking for Leveraging Customer Experience. The Australasian Accounting Business and Finance Journal, 16(5), 89–105. https://doi.org/10.14453/aabfj.v16i5.07.
2. Triveni, K., Bharathi, G. R., & Nawaz, M. (2020). Application of Artificial Intelligence in Indian Banking-Opportunities and Challenges. International Journal of Trend in Scientific Research and Development. https://www.ijtsrd.com/papers/ijtsrd37964.pdf
3. Fares, O., Butt, I., & Lee, S. H. M. (2022). Utilization of artificial intelligence in the banking sector: a systematic literature review. Journal of Financial Services Marketing, 1–18. https://doi.org/10.1057/s41264-022-00176-7.
4. Radenkovic, S., Hanić, H., & Bugarčić, M. (2023). Applying Artificial Intelligence in the Digital Transformation of Banking Sector. https://doi.org/10.3390/proceedings2023085019
5. Lakshminarayana, N., Deepthi, B. R., & Sjrcw. (2019). Advent of Artificial Intelligence and its Impact on Top Leading Commercial Banks in India – Case Study. International Journal of Trend in Scientific Research and Development, 614–616. https://doi.org/10.31142/IJTSRD23850.
6. Srivastava, K. (2021). Paradigm Shift In Indian Banking Industry With Special Reference To Artificial Intelligence. 12(5), 1623–1629. https://doi.org/10.17762/TURCOMAT. V12I5.2139.
