Assessing the Impact of Artificial Intelligence Adoption on Customer Satisfaction in Indian Banking Sector

Deepa R; Satyavani s

doi:10.36948/ijfmr.2025.v07i06.64409

Assessing the Impact of Artificial Intelligence Adoption on Customer Satisfaction in Indian Banking Sector

Author(s)	Ms. Deepa R, Ms. Satyavani s
Country	India
Abstract	Artificial Intelligence (AI) stands as a technological tool of transforming the traditional Indian banking sector into a modernized financial service provider. The emergence of artificial intelligence (AI) has made a paradigm shift in the banking sector that enhances customer satisfaction, decision-making and operational efficiency. The role of AI with data analytics helps financial institutions prevent cyber security issues, fraudulent transactions and foster compliance. Tools such as AI-powered chatbots, digital payment advisors, and biometric fraud detection systems have shown prominence in improving the quality of customer service in the banking sector. AI has paved way for the customers to be aware of financial options and make more informed financial decisions. AI in banking generally leads to increased customer satisfaction due to enhanced efficiency and personalized experiences, but also raises concerns about privacy and the role of human interaction. Therefore, the present study is an attempt to examine the customer perception and satisfaction towards the application of Artificial Intelligence (AI) in the Indian Banking sector. A survey methodology was conducted among 119 respondents who are customers of the private sector banks both men and women between the age group of 25 and 60 years. The structured questionnaire including the demographic profile and questions related to customer perception and satisfaction in using AI powered banking services is used to collect data. Structural equation Modeling (SEM) is employed to analyze the data. The findings of the study reveals the customer perception and satisfaction towards AI enabled services in the Indian banking sector and provides recommendation for banks to offer customer education and transparency to build trust and ensure secured transactions. The implications of the study underscore the significance of AI and its strategic implementation including digital access, and regulatory measures to enable customer-centric AI integration in the banking sector.
Keywords	Artificial Intelligence, customer perception, customer satisfaction, banking sector, digital banki
Field	Computer > Artificial Intelligence / Simulation / Virtual Reality
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-24
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.64409

View / Download PDF File

E-ISSN 2582-2160

doi

CrossRef DOI is assigned to each research paper published in our journal.

IJFMR DOI prefix is
10.36948/ijfmr

Downloads

Research Paper Format Copyright Permission Form and Undertaking Form Cover Page Vol 8 Isu 2 Cover Page Vol 8 Isu 1 Cover Page Vol 7 Isu 6

All research papers published on this website are licensed under Creative Commons Attribution-ShareAlike 4.0 International License, and all rights belong to their respective authors/researchers.

CC-BY-SA

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9687-828-838	editor@ijfmr.com

International Journal For Multidisciplinary Research

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Assessing the Impact of Artificial Intelligence Adoption on Customer Satisfaction in Indian Banking Sector

Share this