Artificial Intelligence as a Game Changer Tool to Reshape the Banking Services in Digital Transformation

Abstract

The banking industry is undergoing a profound transformation, driven by the integration of artificial intelligence (AI) into its operations and services. This study explores how AI is emerging as a game-changing tool, catalyzing a revolutionary shift in the way banks operate and interact with customers within the digital transformation landscape. AI's multifaceted applications in banking, including data analytics, natural language processing, and machine learning, have the potential to enhance customer experiences, streamline operations, and optimize decision-making processes. This research delves into the key roles played by AI in reshaping the financial sector. It investigates how AI is leveraged for personalized customer services, risk management, fraud detection, and compliance with regulatory standards. Additionally, it explores the ethical considerations and challenges that arise with the use of AI in banking, particularly related to bias and fairness. The study also addresses the need for talent development in AI and data science within the banking industry and how a skilled workforce is instrumental in harnessing AI's potential. Furthermore, the study examines the long-term impact of AI investments on the profitability and sustainability of banks, providing insights into measuring the return on investment in AI.