AI's evolving impact in US banking: An insightful review

Abstract

This paper presents an in-depth review of the evolving impact of Artificial Intelligence (AI) in the US banking sector, focusing on how AI technologies are revolutionizing various aspects of banking operations. The review synthesizes information from a wide range of sources, including industry reports, academic literature, case studies, and expert interviews, to provide a comprehensive understanding of AI's role in the banking industry. The key findings of the review indicate that AI has significantly improved operational efficiencies in banks by automating routine tasks and enhancing decision-making processes. AI applications in customer service, such as chatbots and virtual assistants, have transformed customer interactions by offering round-the-clock support and personalized financial advice. In the realm of risk management, AI algorithms have proven effective in detecting fraudulent activities and managing credit risks, outperforming traditional methods through advanced data analysis capabilities. Additionally, AI is playing a crucial role in helping banks comply with regulatory requirements by automating compliance processes and conducting real-time transaction monitoring. The review concludes that AI offers substantial opportunities for innovation and efficiency in the US banking sector. However, it also highlights the challenges associated with AI adoption, including ethical issues, data privacy concerns, and the imperative for workforce up skilling. The paper emphasizes the need for a strategic approach to AI integration in banking, where technological advancements are balanced with human oversight, ethical considerations, and regulatory compliance to maximize the benefits of AI while mitigating its risks