The Role of Artificial Intelligence in Enhancing Customer Satisfaction: Evidence from Banking Sector in Palestine

This research seeks to examine the effect of AI on the customer satisfaction in the banks listed on the Palestine Stock Exchange by taking three different independent variables, including privacy and security systems, mobile banking services, and AI chatbots. Using a quantitative research design, the study employed structural equation modeling (SEM) through Smart PLS statistical software, and had a sample of 300 customers from 8 banks listed on the Palestine Stock Exchange. The variables were measured by a questionnaire that included 16 items, and the data were analyzed to test three hypotheses which posit a positive impact of each variable on customer satisfaction. The results revealed a significant effect of privacy and security systems on customer satisfaction in Palestinian banks. They can be ranked, starting with privacy and security systems, as second mobile banking services, and the third AI chatbots. The results show that AI helps improve customer experience in Palestinian banks, that security was essential for building trust, and that the most influential factors were privacy and security systems, as well as mobile bank services and AI-based chatbots.