Artificial Intelligence Driven E-Services of New Generation Banks: Customer Perception, Attitude and Response Analysis

The rapid integration of Artificial Intelligence (AI) in the banking sector has ushered in a new era of digital financial services, offering unprecedented efficiency, personalization, and customer engagement. This study aims to assess the customer perceptions, attitude, and response towards AI-driven e-services of New Generation banks and to examine the customers’ acceptance of AI-driven e-services of select New Generation banks. A sample size of 351 customers is determined and data collection is executed through structured interview schedules, ensuring respondent anonymity to encourage honest feedback. The results were analysed by using Structural Equation Modelling. The study reveals that respondents generally hold positive perceptions of AI-driven e-services in banking, emphasizing the importance of efficiency, trust, user experience, personalization, and satisfaction. Efficiency and personalization, in particular, are highlighted for their roles in expediting transactions and delivering tailored advice, respectively. However, the lower Rsquare value indicates the customer’s inherent reluctance of using technology due to their concern regarding data privacy. Hence, the bank should focus on safety and security which is critical to maintain customer trust and thereby increasing customer acceptance level of AI technology-based banking services. The implications of this study providing insights into customer preferences and guiding banks in tailoring AI-driven services.