TRANSFORMING BANKING THROUGH AI: ANALYSING THE IMPACT OF CUSTOMER PERCEPTION FACTORS

Technological advancement enhances Artificial Intelligence (AI) performance within the banking environment. In the rapidly evolving landscape of banking, the integration of AI technologies hinges on how effectively consumer perceptions are understood and addressed. The study investigates consumer perception towards AI acceptance in banking institutions. A standardized questionnaire was distributed and gathered data from 312 valid responses. The results indicate that all five factors of customer perceptions (convenience, customization, confidence, retention, and experience quality) have positively influenced AI-driven customer experiences, with experience quality emerging as the most significant contributor. The study concludes that banks must strategically leverage AI to improve these factors while addressing hurdles related to user privacy and information security. The study recommends that banking management consider the need for continuous improvement in technology-driven customer interactions and retention efforts. KEYWORDS: Artificial Intelligence, Convenience, Customization, Confidence, Retention, and Experience quality