The Transformation Potential of AI in Indian BFSI Organizations – An Empirical Investigation
Keywords:
AI, BFSI, Fintech, Privacy, Ethical concernsAbstract
About 46% of the world’s banking digital transactions happen in India. India is the third largest fintech market globally after the US and China, with the highest fintech adoption rate at 87% against a global average of 64%. The current study on Artificial Intelligence (AI) -led Banking Financial Services and Insurance (BFSI) sector transformation is set in India with a research objective to explore the transformation potential of AI in the BFSI industry in India. The empirical study identifies top AI use cases in the Indian BFSI industry and examines the impact of AI on BFSI customer experience including the privacy and ethical concerns introduced by the use of AI. The study reinforces that emerging areas of applied AI are credit risk assessment, cost management, claims investigation, fraud detection and prevention, and stringent customer verification. A key finding of the study is that users have privacy and ethical concerns on the use of AI-powered applications. This has potential to impact the overall growth of the AI industry as users might not embrace the newly developed AI-powered processes. The research contributes to studies on disruptive technologies and AI-led digital transformation in the Indian BFSI industry.
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