Acceptability of Artificial Intelligence-enabled Digital Banking Among Customers:

Insights from PLS-SEM Approach

Abstract

AI has proved useful in almost every area, but its role in Indian banking is still something that needs to be examined. The study looks at how bank customers feel about tools that use AI. Making customers happy is the first step to getting them to accept and stick with less well-known banking technology and automated processes. The study utilizes the technological-acceptance model to figure out the level of acceptability of its parts and separate them into factors that are independent and those that are dependent. “Awareness level”, “efficiency”, “trust”, and “social influence” are the independent variables. “Customer satisfaction” is the dependent variable. So, the structural equation model was made from the answers of 239 retail bank users in northern India. According to the survey, trust is the most important thing for bank customers to enjoy AI-enabled services, followed by awareness. The least important part of customer satisfaction for AIbased banks is their protection. Age and gender are control factors that affect how people see things. In emerging markets like India, it is hard to find out how retail-banking customers feel about AI-based technology. The results shed light on compliance formation. At the end of this study, the paper discusses what it means for financial authorities and decision-makers to use AI in customer service.