Cutting-Edge AI Applications in Banking: Trends, Challenges and Future Directions
Shamli Sharma, Kamal Preet · 2025
Artificial Intelligence (AI) is transforming the banking sector by enhancing productivity, reducing costs, and enhancing customer satisfaction. This review paper explores the current applications of AI in banking, focusing on technologies such as chatbots, predictive analytics, fraud detection systems, and automated decision-making used by leading Indian banks. It also examines the associated challenges, such as ethical concerns, data security issues, and regulatory hurdles, which remain significant barriers to AI adoption. Additionally, the paper discusses future research directions and prospects for leveraging AI to enhance efficiency, customer experience, and operational accuracy in the banking sector.