Authors: Miss Kajal Yadav Assistant Professor, Sandeep Kumar Verma
Abstract: Artificial Intelligence (AI) is transforming the banking industry by improving operational efficiency, enhancing customer experience, and strengthening risk management. AI-powered technologies such as machine learning, natural language processing, robotic process automation, and predictive analytics enable banks to automate routine tasks, detect fraudulent transactions, assess creditworthiness, and provide personalized financial services. AI-driven chatbots and virtual assistants offer 24/7 customer support, while advanced data analytics help banks make informed decisions and improve regulatory compliance. Despite its benefits, AI adoption also presents challenges, including data privacy concerns, cybersecurity risks, ethical issues, algorithmic bias, and the need for skilled professionals. As financial institutions continue to invest in AI technologies, it is essential to establish robust governance frameworks and ensure responsible AI implementation. This study examines the impact of Artificial Intelligence on the banking sector, highlighting its applications, benefits, challenges, and future prospects. The findings suggest that AI has become a key driver of innovation and competitiveness in modern banking, enabling financial institutions to deliver secure, efficient, and customer-centric services.
