Digital transformation and integration of artificial intelligence in financial institutions

Abstract

Purpose Integrating artificial intelligence (AI) into various industries, including the financial sector, has transformed them. This paper aims to examine the influence of integrating AI, including machine learning, process automation, predictive analytics and chatbots, on financial institutions and explores its various aspects and areas. The study aims to determine the impact of AI integration on financial services, products and customer experience. Design/methodology/approach The research study uses quantitative and qualitative methods, as well as secondary data analysis. It investigates four AI subfields: machine learning, process automation, predictive analytics and chatbots. Findings The research findings indicate that integrating AI, particularly in machine learning and chatbot subfields, holds promise and high strategic potential for financial institutions. These subfields can contribute significantly to enhancing financial services and customer experience. However, the significance of predictive analytics integration and process automation is relatively lower. Although these subfields retain their usefulness, they might necessitate alternative workflows and tools that incorporate human involvement. Overall, AI integration minimizes human interactions and errors in financial institutions. Originality/value The research study contributes original insights by exploring the specific subfields of AI within the financial industry and assessing their strategic significance. It provides recommendations for financial institutions to adopt AI integration partially in multiple phases, measure and evaluate the impact of the transformation and structure internal units and expertise to strategize adoption and change.