EXPLORING THE INFLUENCE OF ARTIFICIAL INTELLIGENCE (AI) AND AUTOMATION ON ENHANCING CUSTOMER EXPERIENCE IN THE BANKING SECTOR

Abstract

The banking sector is undergoing a major technological transformation mainly driven by advancements in Artificial intelligence (AI) and automation. Artificial intelligence (AI) technologies have become crucial for the modern banking, which is enhancing customer interactions and operational efficiency (Deloitte Insights, 2023; McKinsey & Company, 2023). AI-powered tools such as chatbots, fraud detection systems, personalized financial recommendations, and advanced data analytics enable banks to deliver tailored services, streamline customer engagement, and strengthen trust through improved transparency and security measures (PwC, 2023; Accenture, 2024).The study explores the influence of AI and automation on customer experience in the banking industry, assessing their impact on key factors such as satisfaction, trust, and loyalty (Kanaparthi, 2024; Commonwealth Bank, 2024). It also examines ethical concerns, including data privacy risks and the necessity of incorporating emotional intelligence into AI-driven customer interactions (Financial Times, 2024). By addressing these critical areas, the research provides a well-rounded idea on the adoption of Artificial intelligence in the banking sector.