Artificial Intelligence in Indian Banking: Opportunities, Challenges and Future Prospects – A Review
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Artificial Intelligence (AI) is changing the way Indian banks work and interact with their customers. From smarter chatbots and automated loan approvals to better fraud detection and easier access to banking in rural areas, AI is making banking more efficient and accessible. Over the last few years, banks across India have increasingly turned to AI tools—like chatbots, machine learning, and robotic process automation—to serve customers better, cut costs, and stay competitive. This review pulls together the latest research (2024–2026) to look at how AI is being used, what benefits it brings, and what challenges remain. While AI is helping banks work faster, reduce mistakes, and reach more people, there are still important questions about data privacy, cybersecurity, fairness, and what happens to jobs as more tasks are automated. The review suggests that for AI to keep benefiting Indian banking, banks must invest in strong digital infrastructure, upskill their employees, and ensure that ethical and regulatory safeguards are in place.
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