From Human Insight to Machine Judgement: A Deep Study of AI’s Structural Impact on Banking Systems

Author(s)	Ms. Indira S
Country	India
Abstract	Artificial intelligence (AI) has become a foundational force in the transformation of modern banking systems, shifting operational and analytical paradigms from human-centered insight to machine-driven judgment. This article presents a comprehensive exploration of AI’s structural impact on banking institutions, focusing on functional integration in customer services, risk modeling, fraud detection, compliance, and strategic management. The study synthesizes contemporary literature to identify key benefits, challenges, and ethical concerns associated with AI adoption. It also outlines implications for financial stability, inclusion, workforce dynamics, and regulatory frameworks. Policy recommendations and a forward-looking research agenda are proposed to support responsible and transparent AI adoption in the global banking sector.
Keywords	AI in Banking System, Banking Services, Financial System, Technology, Structural transformation.
Field	Sociology > Banking / Finance
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-02-27

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