The Role of Artificial Intelligence in Banking: Challenges and Implementation

Abstract

Artificial Intelligence create big impact on various industries. Indian banking system is one among them. To enhance functional capabilities and gain expertise in functions, banks are interested to implement new technology based system like artificial intelligence which include various vital activities like PA, RPA, NLP and ML. As providing advantage in functional capabilities this technology driven system also provide some challenges regarding cost to implementation, confidence level in customer mind, security of data and so on. This paper focused on to evaluate various influence on banking and financial industry from technology driven system. This study concentrate on various issues mainly the followings, Impact of AI based system functional capability, customer opinion about technology based activities, issues related to technology based banking system and government rules and regulations regarding financial institutions. This research focused on technology driven tools to personalised services, automation of functions and overall customer satisfaction level regarding banking sector. It is also evaluate the challenges associated with implementation of AI driven process like security and customer awareness about AI an make them familiar with new technology like AI. From this study the some points identified. These are the necessity of ethical based governance with AI, measure to safeguard data from unauthorised access, create awareness about usage of new technology like AI in consumer side. At the the end of this study, conclude with that even some challenges associated with new technology like AI based banking system, it is very important to continues development for financial market wich decided overall development of the nation.