Impact of Artificial Intelligence on Customer Satisfaction in the Banking Sector

Author

Dr. Ajay Kumar Varshney, Ms. Bonthu Sai Pujitha


Abstract

 Artificial Intelligence (AI) is transforming the way banks provide services, but there is not much evidence on the impact AI-enabled services have on customer satisfaction. This study investigates the effect of AI based banking service on customer satisfaction and evaluates the mediating role of AI service quality, perceived ease of use, perceived usefulness, AI reliability and accuracy, customer trust and perceived security and privacy as well as difference in terms of age, bank type, income and digital literacy. The study was conducted using non-probability sampling of the bank customers in Andhra Pradesh and a structured 5-point Likert type scale was administered online. Duplicate records and one incomplete response were excluded leaving 44 valid responses which were analysed using chi-square tests, one-way ANOVA and simple, multiple and hierarchical linear regression with ancillary bootstrapping mediation and interaction analysis. The overall satisfaction of the customers was at a moderate level (M = 3.53, SD = 0.68). The satisfaction was greatly predicted by AI-enabled banking services (β = .66, R² = .435, p < .001) and each perception construct had a positive association with satisfaction. This effect was partially mediated by customer trust and perceived security and privacy (indirect effects = 0.27 and 0.19; both bootstrap 95% confidence intervals (BCIs) were non-zero). Satisfaction level was associated with digital literacy, χ²(4) = 14.21, p = .007, and mean satisfaction differed by age group, F(3, 40) = 4.29, p = .010, and by digital-literacy level, F(2, 41) = 4.76, p = .014, but not by gender, income or bank type. There was no moderation effect by digital literacy on the relationship between AI and satisfaction. Results are only indicative due to the small non-probability sample. Trust building, clear communication of security and privacy protection, reliable AI results, and digital-literacy support for customers should be the main areas of focus for banks.



Keywords

Artificial Intelligence (AI), Customer Satisfaction, AI-Enabled Banking Services, Customer Trust, Service Quality, Perceived Security and Privacy, Digital Banking, Digital Literacy.



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References


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