Integration of AI in the banking sector
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Date
2024-08Publisher
Brac UniversityAuthor
Dembo, Sardauna Abdul-soburMetadata
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The modern world is gradually moving towards a global civilisation that is automated and
propelled by technology. Artificial intelligence (AI) is a highly advanced technology that has
been acknowledged as a major innovation. The incorporation of this technology into the banking
sector has enhanced operational procedures in relation to customer satisfaction, virtual
assistance, and risk reduction. This machine is employed to streamline activities and improve
how decisions are made in this sector. This study investigates the potential benefits and
challenges of implementing artificial intelligence in the banking sector. The methodology
ensures a comprehensive understanding of the implementation of artificial intelligence in
banking by showcasing its effectiveness, precision, and efficiency, as well as the opportunities it
presents. The study data were collected from secondary sources, such as recent publications that
demonstrate applications of artificial intelligence from five different banks, as well as the
examination of industry reports. The main findings of this study demonstrate the substantial
improvement of administrative operations through AI-driven technology, which effectively
automates activities that include inputting data and handling information. As a result, the
frequency of mistakes caused by people has reduced, leading to a 30% decrease in operational
expenditures for all evaluated institutions. However, the banking industry admits the challenges
it encounters, such as issues with confidentiality and a scarcity of skilled employees. In the
financial services industry, the integration of artificial intelligence into the banking sector is
perceived as an advantageous chance instead of a harmful danger, with a greater potential for
beneficial impact.