Artificial Intelligence and Robotics and their Impact on the Performance of the Workforce in the Banking Sector

Abstract

Objective: This study seeks to investigate the application and impact of Artificial Intelligence (AI) in the Indian banking sector, specifically its role in optimizing operations and enhancing customer service. Theoretical Framework: The study is grounded in the perspective that AI, a technology marked by its human-like intelligence, has transformative potential in diverse sectors, including banking. It is theorized that AI applications can lead to customer service automation, personalized services, and data-driven decision-making in banking. Method: A combination of secondary data sources, including documents, newspapers, news reports, banking databases, RBI portals, and websites, was utilized. Further, quantitative analysis was conducted on primary data collected from two hundred banking staff members across different banks in Tamilnadu, India. Results and Conclusion: The data analysis demonstrates a significant correlation between AI implementation and improved banking performance. Nonetheless, the Indian banking sector is yet to fully leverage AI and machine learning capabilities. The study foresees a promising future with AI deployment, offering opportunities for cost reduction, enhanced customer experience, and financial inclusion. Implications of the research: Despite challenges such as linguistic diversity, customer trust, and data security, the research suggests potential partnerships with fintech companies to mitigate these issues. This research thereby contributes to the understanding of AI's transformative potential in the banking sector and the way forward to address existing challenges. Originality/Value: This research offers unique insights into AI's role in reshaping traditional banking practices and the hurdles to its extensive application in India. It suggests a novel approach of partnerships with fintech companies to overcome these challenges, adding value to the discourse on AI in banking.