Artificial Intelligence in Banking: Its Impact on Operational Efficiency and Customer Service

Abstract

The banking sector is going through a paradigm shift due to the advent of Artificial Intelligence (AI) which has raised the bank efficiency to a whole new level and revolutionized the banking customer experience. The focus of the present study is to explore how AI is being applied in the banking system and in the customer service sector and its contribution to customer satisfaction, decision making, personalization, and efficiency and accuracy of the banking process. The main data collected was through the use of a questionnaire. There were 285 respondents. Statistical analysis was used to statistically assess the impact of using AI on the efficiency of the banking process, decision making and the satisfaction of customers, such as correlation and regression analysis. The results revealed that the use of AI in the banking system and customer service area can positively impact the banking process and decision-making mechanism, and the effectiveness of the bank. The study, however, revealed that the level of customer satisfaction is not impacted by the introduction of AI-powered service in the banking system. The study also revealed that there's no perfect recipe for customer satisfaction and a mix of AI-powered and human strategies is necessary to ensure high customer satisfaction. This can be done by enhancing accessibility, openness and inclusiveness, thus supporting the innovation of banking services that will ultimately result in better service provision. The novelty of the present study is on the empirical evidence that addresses the importance of AI in today's banking industry.