• Dr.Aitha Cheralu
• Biry.Kishore Kumar

Artificial intelligence (AI) in banking plays a pivotal role by enhancing data analysis, predicting trends and fraud risks, and improving customer engagement.AI empowers various banking sectors—including retail, commercial, and investment banking-to deeply comprehend market dynamics and customer behaviors, analyze digital interactions, and offer engagement that resembles human intelligence and interaction but on a much larger scale. AI can enhance customer service in banking by providing 24/7 support through chat bots that can handle routine inquiries and transactions. Additionally, AI systems can analyze customer data to personalize banking experiences, offering tailored financial advice and product recommendations. Moreover, AI can streamline processes such as loan approvals and account management, reducing wait times and improving overall customer satisfaction. Banks can use AI effectively in five major ways: customizing services and products for individual needs, identifying new business opportunities, predicting and identifying risk and fraud, and streamlining operations. AI’s potential to improve the banking sector for both banks and their customers is significant; it should be developed and applied in an appropriate manner. It’s especially important in the context of generative AI. Ethical considerations must be at the forefront when implementing AI in banking to ensure fair and unbiased decision-making. Banks need to ensure transparency in AI algorithms to prevent discrimination and bias against certain groups of customers. Additionally, safeguarding customer data privacy and security is critical to maintaining trust and avoiding potential misuse of sensitive information.

Data Analytics, Digital Interactions, Generative AI, Retail Banking.

"A Study on “Role of AI in the Field of Banking Sector in India”", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 11, page no.167-174, November-2025, Available :http://www.jetir.org/papers/JETIRHD06028.pdf

"A Study on “Role of AI in the Field of Banking Sector in India”", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 11, page no. pp167-174, November-2025, Available at : http://www.jetir.org/papers/JETIRHD06028.pdf