Determinants and Performance Impact of Artificial Intelligence adoption in Indian Banking: A Regional comparative analysis

Abstract

 Artificial Intelligence is changing the way banks work by helping them reduce risks, run daily operations smoothly and serve customers better. Most research talks about how AI saves time and cut costs, but very few studies compare how its use differs across different regions. This study looks at how banks in metro, urban and rural areas are using AI, based on data from regulatory reports and industry sources. The findings show clear differences how metro area banks use AI across many activities, urban banks use it in a limited and uneven way and rural banks are mostly still trying out basic AI tools. Even though AI offers big advantages like higher efficiency and better customer experience, many banks are moving slowly because of poor infrastructure, shortage of skilled workers, strict regulations and data-related issues. Without region‑specific support, these differences in AI adoption may grow wider instead of narrowing.