Customer Adoption of AI-Based Banking Services: The Mediating Role of Customer Attitude

Abstract

Artificial Intelligence (AI) is changing the banking industry with automation, fraud detection and personalized financial services. The current study investigated the factors affecting customer adoption of AI-based banking services and the mediating role of customer attitude. The study is based on the Technology Acceptance Model (TAM) and security, trust and ease of use are considered as major determinants of customer attitude and adoption behavior. Primary data were collected from 150 digital banking users in India via a structured questionnaire and analysed through Structural Equation Modelling (SEM) and mediation analysis. The results show that trust, security and ease of use have a significant impact on customer attitudes towards AI-based banking services. Customer attitude also plays a significant role in customer adoption. The mediation analysis confirmed that customer attitude mediates the relationship between independent variables and adoption behavior. The security predictor had the greatest effect on customer attitude. The study highlights the importance of secure, reliable and user friendly AIBased Banking systems in enhancing customer adoption.