Role of Artificial Intelligence and Chatbots in Banking Services

Abstract

                 Artificial Intelligence (AI) and chatbot technologies are playing a major role in transforming the banking sector. Banks are increasingly adopting AI-driven systems to improve customer service quality, operational efficiency, accuracy, and fraud detection. This research study examines the role, adoption, and effectiveness of AI and chatbot services in banks located in the Pimpri-Chinchwad Municipal Corporation (PCMC) region. The study focuses on customer satisfaction, response time, service quality, operational accuracy, and fraud prevention. Primary data was collected through structured questionnaires from bank customers and employees, while secondary data was gathered from journals, RBI reports, and official bank websites. The chi-square test was applied to examine the relationship between customer satisfaction and chatbot usage.The findings reveal that chatbots significantly reduce customer waiting time and enhance convenience through 24/7 availability. However, challenges such as technical errors, limited problem-solving ability, and lack of personal interaction still exist. The study suggests measures to strengthen AI adoption in PCMC banks.