A Literature Review on the Impact of Artificial Intelligence on the Future of Banking and How to Achieve a Smooth Transition

Abstract

The banking industry significantly impacts individuals, businesses, and the economy. While it has made progress in adopting Artificial Intelligence (AI), it has also encountered some challenges. The banking industry is transforming significantly due to adopting AI-based technology across all banking disciplines, including the front, middle, and back offices. While the AI benefits are significant, its challenges require careful navigation. Undoubtedly, AI will continue to significantly contribute to how banks conduct their business in the future. To remain competitive, banks must introduce the technology and continuously deepen its application. However, a sound upfront understanding of its potential benefits, challenges, and critical implementation milestones will be essential to achieve optimal success from its implementation. Based on an investigation of peer-reviewed literature, the paper explores the benefits and obstacles of incorporating AI technology into the banking industry and recommends critical success factors for its implementation.