Unveiling the Progress of Artificial Intelligence in the Banking Landscape of India

The rapid advancement of technology worldwide is being driven by Artificial Intelligence (AI). This study aims to evaluate the impact of digitalization on the implementation of AI in the banking sector to address customer inquiries and complaints through either fully automated or human-assisted processes. This study is based on qualitative research using secondary data sources through systematic search. The findings of the study indicate that AI technologies have the greatest potential for cost savings across various banks, particularly in front and middle-office operations. In an effort to prevent fraudulent payments and improve anti-money laundering and KYC regulations, banks are integrating AI into their middle office operations. Additionally, banks utilize AI to improve client identification and verification, provide personalized insights and suggestions, enhance customer relationships through chatbots and voice assistants, and simulate human interactions. This study will provide a comprehensive understanding of the various applications of AI in banks. It will serve as a useful resource for banks and financial institutions to effectively leverage AI for optimal results.