Tensions in AI-driven digital servitization in the banking industry: a socio-technical view

Purpose The rapid integration of AI into customer advisory processes has transformed traditional service delivery in the banking industry. There is a critical gap in our understanding of how interactions between structures, banking employees, AI and work tasks in banking socio-technical systems give rise to tensions. Thus, this study explores how interactions and interdependencies between these elements in socio-technical systems manifest tensions in AI-driven digital servitization efforts in customer advisory and sales in banking. Design/methodology/approach Based on 25 expert interviews with banking employees working in customer advisory and sales, this study offers a multifaceted perspective on emerging tensions in banking, underlined by interactions and interdependencies between structures, people, AI and tasks. Findings The findings illustrate how interactions and interdependencies in banks' socio-technical systems manifest four key tensions in AI-driven digital servitization: structural control vs bank employee adaptability, data governance structures vs technology innovation, AI-augmented decision-making vs human intuition in decision-making and role evolution vs job security. Practical implications This study advances the theoretical understanding of digital servitization by providing a socio-technical system view on emerging tensions in AI-driven digital servitization (DS) in banking. It highlights the complex interactions and interdependencies between technological and social elements that manifest such tensions. Furthermore, the study proposes tension management strategies for managers leading AI-driven DS initiatives in banks to proactively navigate and manage the four tensions. Originality/value This study provides a comprehensive empirical account of emerging socio-technical tensions in the banking industry due to socio-technical interactions in AI-driven digital servitization.