Emerging Role of Artificial Intelligence for Operational Efficiency of Banks: A Review of Promising Literature

Nazim Uddin Ahmed, Junybirth T. Sangma

Abstract: This research study lies in its exploration of how artificial intelligence (AI) is transforming banking operations. As the banking industry undergoes rapid digital transformation, AI-driven technologies such as chatbots, automated loan processing, fraud detection, and personalized customer services are reshaping operational efficiency and customer experience. This study aims to bridge the knowledge gap by analysing the extent of AI adoption, its benefits, challenges, and the effectiveness in the banking sector. Understanding these factors is crucial for policymakers, banking professionals, and researchers to develop strategic frameworks for AI integration, ensuring improved financial services, security, and operational excellence. Additionally, the review of earlier studies will provide insights into the impact of AI on employment, decision-making, and customer satisfaction, thereby contributing to the broader discourse on technology-driven banking reforms. Hence, the paper is an attempt to review the promising literature in this emerging area.

Keywords: Artificial Intelligence, banking, literature, efficiency and bank operation