An Empirical Study Of Customer Perception Of Ai In The Banking Industry With Particular Emphasis On Public Banking Institutions

Abstract

Purpose: Artificial Intelligence (AI) is generally recognized as the imitation of intelligence exhibited by machines, imitating actions akin to those performed by humans. The current landscape underscores the growing significance of AI, characterized by a rapid increase in its adoption. The operational framework of AI is grounded in two key principles. Firstly, there is an emphasis on understanding the mechanisms of the human brain and grasping its cognitive processes. Subsequently, these insights are practically implemented through the application of machine learning methodologies.
This research study aims to investigate customer perspectives on the integration of AI within the Banking Industry. To achieve this objective, participants were specifically chosen from the customer bases of certain public sector banks.
Research Methodology/ Design: This research is based on primary data collected using a structured questionnaire. 385 respondents were considered for the study. The respondents were selected using a random sampling technique. Customers of selected public sector banks were chosen for the study. Data gathered underwent analysis through AMOS 26 and SPSS 21 versions.
Findings: This study shows that AI has a crucial role to play in the banking sector. It also observes the main factors or elements that influence the adoption of AI in the banking Industry
Practical implications: AI provides a wide range of opportunities for the banking sector. At the same time, it’s not free from challenges. The present study helps policymakers to frame strategies by considering the opportunities available and the threats imposed by AI.
Originality/ value: The study tries to comprehend AI and its significance in the banking sector.