Role of Artificial Intelligence in Enhancing Service Excellence in Indian Banking Sector

Abstract

 
The Indian banking sector is undergoing a profound digital transformation, primarily driven by the integration of Artificial Intelligence (AI). This research investigates the role of AI technologies—specifically chatbots, personalized service delivery, and fraud detection—in enhancing service excellence within Indian banks. Employing a quantitative research design with a sample of 400 respondents, the study assesses the impact of AI adoption on various dimensions of service excellence, including responsiveness, reliability, and personalization. Statistical analyses, including descriptive statistics, Pearson correlation, and multiple linear regression, were conducted. The results reveal a significant positive correlation between AI adoption and service excellence (r = 0.840). Regression analysis indicates that AI chatbots (beta = 0.285, p < 0.01) and AI-driven personalization (beta= 0.257, p < 0.01) are significant predictors of service excellence, accounting for 70.8% of the variance. While AI fraud detection showed a positive trend, its individual contribution was not statistically significant in the presence of other variables. The findings underscore the importance of strategic AI implementation to achieve operational efficiency and superior customer experience. The study provides actionable insights for banking professionals and policymakers to leverage AI for sustainable competitive advantage in the digital era.