ARTIFICIAL INTELLIGENCES IMPACT ON BANKING SECTOR: AN EXCLUSIVE STUDY ON PRIVATE SECTOR BANKS IN INDIA

Abstract

The deployments of Artificial Intelligence (AI) has transformed the functioning private banking sector Bank in India. Although customers initially expressed hesitation, AI-driven services are now havely accepted due to their efficiency and reliability. This study analyse the dual impact of AI on customers and bankers by analyzing both primary and secondary data. A total of 200 responses were collected, including 170 from customers and 30 from banking professionals across leading Indian private such as HDFC Bank, Axis Bank, ICICI Bank, and Karnataka Bank. Statistical tools used including chi-square analysis, correlation, and regression were employed to test and analyse the relationships between AI adoption, customer satisfaction, and operational outcomes in this regards. Results reveal that AI contributes positively to transaction safety, accuracy, and customer convenience through features like chatbots and mobile apps and advance Ai driven apps. However, issues such as high implementation costs, technical complexity, and concerns around workforce displacement remain exist. The study provides evidence-based insights and practical suggestions to guide smoother integration of AI applicationinto private banking.