Digital transformation of Commercial Banks in Kyrgyzstan driven by artificial intelligence: Efficiency, Risk and Policy Response

This study delves into the application of artificial intelligence (AI) in the digital transformation of Kyrgyzstan’s commercial banks, its impact on economic efficiency and risk exposure, and proposes policy responses. Using panel data from 2019 to 2023 and a TOE analysis framework, it reveals an inverted U-shaped relationship between AI investment and bank efficiency, higher initial cybersecurity risks that diminish with system maturity, and significant government policy support. The study suggests dynamic risk management and regional fintech collaboration to boost the digital financial ecosystem in Kyrgyzstan and Central Asia.