Role of Artificial Intelligence in Banking

Abstract: Artificial Intelligence (AI) is revolutionizing the banking sector by reshaping customer experience, risk management, fraud detection, and operational efficiency. With the rapid increase in digital transactions, banks are adopting AI-based solutions such as chatbots, predictive analytics, and personalized services to stay competitive and secure. This paper examines the role of AI in banking, its practical applications, advantages, and challenges. It also analyzes global and Indian perspectives, supported by case studies and statistical data, to highlight how AI is transforming traditional banking practices. The study concludes that AI is not just a technological upgrade but a strategic necessity for the future of banking.