ARTIFICIAL INTELLIGENCE IN BANKING: ENHANCING CUSTOMER EXPERIENCE AND OPERATIONAL EFFICIENCY

Abstract

Artificial Intelligence (AI) is revolutionizing the banking sector by transforming customer experience and streamlining operational efficiency. This technology enables banks to offer personalized services, predict customer needs, and provide round-the-clock assistance through AI-driven chatbots and virtual assistants. By leveraging AI's capabilities, banks can analyze vast amounts of data in real-time to enhance decision-making processes, detect fraudulent activities, and ensure compliance with regulatory standards. The integration of AI also facilitates cost optimization by automating routine tasks, reducing human intervention, and improving overall productivity. Moreover, AI-driven insights allow for the customization of financial products, enhancing customer satisfaction and loyalty. However, the implementation of AI in banking also raises challenges, including data privacy concerns, ethical considerations, and the need for significant investment in technology infrastructure and workforce training. This paper explores the transformative role of AI in banking, focusing on its impact on customer engagement, risk management, and operational processes, while addressing potential barriers to adoption.