AI Chatbots in Banking: Transforming Customer Service and Operational Efficiency

Abstract

This study investigates the incorporation of AI powered chatbots in the banking sector and their usage of improving customer service and operational efficiency as well as improving the customer’s engagement and serve to fulfill his needs. The research overviews how the technologies like artificial intelligence (AI), machine learning (ML), natural language processing (NLP) and robotic process automation (RPA) are reengineering traditional banking services through a comprehensive review of thirteen peer reviewed articles together with analysis of Power BI visualizations. The study finds that chatbots help shorten customer waits time, provide consistent information and allow the customers to make the financial decisions with personalization. Most used features of key chatbot features identified as General Inquiry and Transaction Help in the highest rated of customer satisfaction. Although, these advancements do not make trust, data privacy related issues and also the limits with which complex or emotively nuanced queries are being tackled. This provides further evidence that chatbots must always excel at design and ethical application of AI and hybrid human-AI collaboration models must continuously improve. The ways the banking institutions can keep more inclusive, safe, and effective AI chatbot implementation are also discussed to support future research.