Artificial intelligence (AI) is becoming an inseparable part of our daily lives as it can solve tough problems in a competent way in manifold areas like bank, insurance, healthcare, education, operations, etc. This chapter explains how financial institutions are implementing AI, algorithm trading, and intelligence that is adaptive to their financial processes. The banking sector in India has gone through significant transformations with the infusion of technology. Technological innovation has played a crucial role in reshaping the landscape of banking operations, bringing about positive changes in various aspects such as cost effectiveness, productivity and efficiency, small value transactions, digital payment systems, mobile banking apps, and online transfers. Adoption of technology has given customers a wide range of choices in terms of banking services from online banking to mobile apps.
Top1. Introduction Of Ai And Banking Sector
Innovations in technology have the power to change entire. Artificial intelligence (AI) is one such technological development that has attracted a growing amount of attention (Ahmed et al. 2022). In the quickly changing world of technology, today all sectors need to keep abreast of the most of recent developments. Undeniably, the financial services sector is going through a noteworthy transformation due to rise in technological advancements.
Artificial Intelligence is becoming the inseparable part of our daily routine life as it can solve toughest problems with a competent way in manifold areas, such as entertainment, Healthcare, education, finance etc. Following are various areas which are working for introducing Artificial Intelligence in their operations: Saini, (2023).
Figure 1.
AI in different sectors (Saini, 2023)
Artificial Intelligence and banking institutions are the best counterparts for one another. The financial institutions are implementing AI, algorithm trading and intelligence that is adaptive into their financial processes. The banking sector in India has gone through significant transformations with the infusion of technology. Technological innovation has played a crucial role in reshaping the landscape of banking operations, bringing about positive changes in various aspects such as: cost effectiveness, productivity & efficiency has been increased, small value transactions become more practicable, digital payment systems, mobile banking apps, and online transfers have facilitated quick and convenient transactions, adoption of technology has given customers a wide range of choices in terms of banking services, from online banking to mobile apps, customers now have the flexibility to choose the channels that best suit their preferences and needs. Several decades ago, traditional banking faced numerous challenges, and the industry has undergone substantial changes to address these issues.
Here are some of the key problems faced by traditional banking in India and how technological innovations have helped overcome them (Shetty et al. 2022).
Figure 2.
Problem faced by traditional banking (Shetty et al., 2022)