Evaluating the Role of Artificial Intelligence in the Automation of the Banking Services Industry: Evidence from Jordan

Abstract

Due to the necessity of using technology in the most of banking and financial services, the adoption of artificial intelligence (AI) has become one of the key drivers for financial institutions’ success. Financial institutions including banks implement AI based systems for the aim of meeting the needs of their clients. Although developing economies are bit slower in such adoption, however, they are still making their efforts. The current paper sheds the light on the role of AI in the enhancement of banking sector by exploring how AI based systems contribute in enhancing banking services and developing the trust of clients towards these services, so that developing economies could also adopt such advancements confidently. Consequently, after studying the Jordanian banking system through primary data, incorporating banking employees and clients, the study revealed that AI based systems conduct a central role in enhancing effective risk management, creating convenience, reducing costs and improving clients’ trust towards banking services. Moreover, the study induced that developing countries like Jordan should adopt and implement AI based systems in banking operations and services so that their banking sectors could play a more constructive part of their economies.