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ARTIFICIAL INTELLIGENCE IN BANKING: AN EMPIRICAL STUDY ON AI-POWERED DECISION-MAKING AND STRATEGIC MANAGEMENT EFFICIENCY IN INDIAN COMMERCIAL BANKS

Artificial Intelligence (AI) has emerged as a strategic technology transforming the structure, processes, and decision-making capabilities of the banking sector. Indian commercial banks are increasingly integrating machine learning, predictive analytics, natural language processing, robotic process automation, and intelligent decision-support systems into credit assessment, fraud detection, customer relationship management, risk management, and strategic planning. This empirical study examines the influence of A…

By the Truvace desk1 min read1 sourcePeer-reviewedTRV-2026-2070· cite & verify
ARTIFICIAL INTELLIGENCE IN BANKING: AN EMPIRICAL STUDY ON AI-POWERED DECISION-MAKING AND STRATEGIC MANAGEMENT EFFICIENCY IN INDIAN COMMERCIAL BANKS
Pat Rakes recording data on the banks of Little Chucky Creek (4948426443) by U.S. Fish and Wildlife Service Southeast Region. Public domain

In brief

An empirical study of Indian public and private sector commercial banks examined how AI-enabled decision-making relates to strategic management efficiency. It looked at four dimensions: decision accuracy, decision speed, predictive capability, and risk-management support.

The result suggests banks may gain most when AI is treated as a strategic decision-support capability rather than only as automation. Uncertainty remains because the text describes the data collection and sample as proposed or considered, and the findings are correlational and perception-based.

Main points

  1. The study covers AI uses in credit assessment, fraud detection, customer relationship management, risk management, and strategic planning.
  2. Decision accuracy and predictive capability were the most influential dimensions of AI-enabled decision-making.
  3. AI-enabled risk assessment was reported to strengthen managerial responsiveness and strategic planning.
  4. The authors name AI governance, reskilling, responsible data management, and human oversight as essential.

The gain

AI-powered decision-making, especially decision accuracy and predictive capability, was positively and significantly associated with strategic management efficiency among Indian commercial bank professionals.

The rundown

The study frames AI as a strategic technology reshaping the structure, processes, and decision-making of banking. Indian commercial banks are described as integrating machine learning, predictive analytics, natural language processing, robotic process automation, and decision-support systems.

The methodology relied on a structured questionnaire for banking professionals, with a sample of 400 respondents and proportionate stratified sampling. Analyses included descriptive statistics, Cronbach's alpha, correlation, exploratory factor analysis, and multiple regression.

The authors conclude that sustainable efficiency and competitive advantage depend on governance, employee reskilling, responsible data management, and human oversight.

Sources

  1. Peer-reviewedActa Innovations2026-10-18

The debate