Artificial Intelligence (AI) and Business Efficiency of Selected Banks in Benin City, Nigeria

The problem of inefficiency in the banking industry, particularly in service delivery, fraud prevention, routine process management, and security operations, has created the need for innovative technologies capable of improving business efficiency. This study examined the effect of Artificial Intelligence (AI) on the business efficiency of selected banks in Benin City, Nigeria. Specifically, the study investigated the effects of Natural Language Processing (NLP), Fraud Detection Technologies, Robotic Process Automation (RPA), and Computer Vision on business efficiency. A cross-sectional survey research design was adopted. The study population comprised 662 employees of selected banks that had implemented AI technologies, from which a sample of 324 respondents was determined using the Taro Yamane (1967) formula. Structured questionnaires were used for data collection, while 280 valid responses were analyzed using descriptive statistics and multiple regression analysis with SPSS. The findings revealed that all four AI dimensions had a positive and statistically significant effect on business efficiency. Robotic Process Automation exhibited the strongest positive effect, followed by Natural Language Processing, Fraud Detection Technologies, and Computer Vision. Collectively, the AI dimensions explained 23.8% of the variation in business efficiency (R² = 0.238), and the overall regression model was statistically significant (p < 0.001). The study concludes that AI technologies significantly enhance business efficiency by improving service delivery, strengthening fraud prevention, automating routine processes, and enhancing security. The study recommended that commercial banks strengthen AI integration, invest in digital infrastructure, and provide continuous employee training to maximize the benefits of AI-driven banking operations.