AI In Banking: Current Adoption, Challenges, And Future Scope
Keywords:
Artificial Intelligence, Banking, Automation, Risk Management, Secondary Data, Digital Banking, Fraud DetectionAbstract
Artificial Intelligence (AI) has emerged as one of the most transformative technologies in the global banking sector. Financial institutions increasingly adopt AI to improve customer service, automate operations, strengthen fraud detection, enhance credit scoring, and optimize risk management. This research paper examines the current adoption of AI in the banking industry, identifies major challenges in implementation, and analyses the potential future opportunities for AI-driven financial services. The study relies entirely on secondary data, including academic research, industry reports, regulatory publications, and global banking case studies. Key findings reveal that AI adoption is accelerating due to digital transformation, but banks continue to face challenges such as data privacy concerns, high implementation costs, skill shortages, ethical risks, and regulatory constraints. The paper concludes that AI will continue to reshape banking, making services more efficient, personalized, and secure. However, responsible innovation, robust governance, and strong regulatory frameworks are essential for sustainable adoption.
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