An Analytical Study of Applications of Artificial Intelligence on Banking Practices

Abstract

Purpose: Artificial intelligence (AI) has the potential to enhance the creativity, adaptability, and flexibility of enterprises beyond their current capabilities. Many businesses are already leveraging AI to increase productivity and competitiveness, as well as drive digital transformation in various industries. In India, AI is assisting banks in upgrading their operations across the board, from traditional to digital banking practices. This study is based on the application of AI on various virtual assistants provided by public sector banks in Kerala as well as the recent advancements and emergence of virtual banking and modern banking trends. Design: In this study, both descriptive and analytical research designs were employed. A standardized questionnaire was administered to 150 Bank employees to collect primary data and demographic information. To ensure the validity and reliability of the study, a pilot survey and Cronbach's Alpha test were conducted to assess the variables of measures. The collected data were analyzed using correlation analysis, multiple regression analysis, and Multicollinearity. Findings/Results: The current research findings support the notion that artificial intelligence has a significant impact on various practices within public-sector banking. The study's results demonstrate that the independent variables, including Chatbot, Robo Advice, Predictive Analytics, Cyber security, and Credit Scoring, collectively serve as significant predictors (64%) of banking practices. Paper Type: Descriptive and Analytical Research