International Research Journal of Education and Technology

Artificial Intelligence (AI) is transforming the banking industry by improving accuracy, efficiency, and decision-making processes. This paper explores the impact of AI on various banking functions, including credit risk management, customer service, fraud detection, loan processing, investment management, and regulatory compliance. AI-driven models analyze large volumes of real-time data to enhance credit scoring, identify fraud patterns, automate loan underwriting, and personalize customer experiences. Machine learning algorithms improve predictive accuracy, enabling banks to make faster and more informed decisions. AI also enhances operational efficiency by automating routine tasks, reducing processing time, and minimizing human errors. The paper highlights the advantages of AI in banking, such as cost reduction, improved customer satisfaction, enhanced fraud prevention, and better risk management. Real-world examples from Indian banks, including HDFC, ICICI, and SBI, demonstrate how AI has improved operational performance and customer engagement. AI-driven solutions have positioned banks to respond more effectively to market changes and customer needs, ensuring long-term competitive advantage in the financial sector.

Keywords

Artificial Intelligence, Banking Industry, Credit Risk Management, Fraud Detection, Customer Service, Regulatory Compliance, Machine Learning, Predictive Analytics.