The Role of Artificial Intelligence for Enhancing Customer Experience – An Empirical Study in Indian Banking Sector

Abstract

In the rapidly evolving Indian banking sector, the integration of Artificial Intelligence (AI) has emerged as a transformative force in enhancing customer experience.  This empirical study explores the multifaceted roles of AI technologies in improving service delivery, operational efficiency, and customer satisfaction within Indian banks.  By analysing data from a sample of major banks that have implemented AI-driven solutions, the study investigates the impact of AI tools such as chatbots, predictive analytics, and personalized financial services on customer interactions.  Indian banks are in a position where they can’t ignore AI as other NBFC’s are competing with better features to attract the customers.  AI helps in identifying the customer preference patterns which in turn can be used to offer customised product to the customer.  The research employs comprehensive method in collecting data from banking customers.  Data regarding the use of chatbots on online banking platforms has been collected through a survey in order to better understand the front-office customer experience with AI-Banking.  The Relative Importance Index is used in a quantitative analysis to identify the main use cases that customers have ranked.  To determine the relationship between the two most prevalent factors, Spearman correlation is applied.  This study contributes to the understanding of AI's role in modernizing the Indian banking sector and offers actionable insights for banks aiming to leverage AI technologies to enhance customer experience while addressing potential pitfalls.