Artificial Intelligence’s Impact on the Banking Industry: Enhancing Security and Efficiency
Surendra Kumar Pandey, Bharat Bhushan, Pronaya Bhattacharya, Esraa Mohammed Alazzawi, Akhtar Jamıl, Ravish Kumar Singh · 2025
The Banking industry has always kept security as their top-most priority since the early days. From implementing heavy security controls and im-peccable encryption standards, the leading banks have utilized all the re-sources available to offer a secure and scalable digital banking system. However, in today’s date, there are more resources than just security controls or encryption algorithms. The use of Artificial Intelligence (AI) has had a much higher impact on detection, analyzation, and mitigation than other security controls introduced previously. This research paper examines the way artificial intelligence has influenced the financial sector, especially banking. AI makes work easier through better customer treatment, credit scams, loan approvals, and minimizing risks. New technologies such as AIbased chatbots and virtual employees would enable a bank’s customers to be well-catered all the time by-products such as insurance and loans in an era of convenience and within the shortest time possible. This paper looks at how AI can benefit various operations including, even lowering cost and providing forecasts for improved performance. However, this research also covers issues like Data privacy, regulatory concerns, and ethical issues that need to be investigated. Thus, the research paper focuses on the state of AI implementation in banking and possible future developments in its appli-cation.