Does Adoption Of Ai Swell The Financial Performance Of Banks In India: A Comparative Study Of Sbi And Icici Using Balanced Panel Data

Abstract

Banking sector is a major financial service sector that plays a significant role in economic growth of India. In today’s world information and communication technological transformation essentiated banks to adopt artificial intelligence for their core operating activities to enhance the efficiency, faster and securable customer services under competitive edge. Banks are the major service sector. The present paper aimed at examine financial performance of banks in India pre and post adoption of AI by employing CAMEL model and various financial parameters. SBI from public sector banks and ICICI from the private sector banks being selected as sample for the study. The study period for the pre adoption of AI is 7 years (2010- 2011 to 2016-2017) and post adoption of AI is 7 years (2017-2018 to 2023-2024). With help of SPSS, paired t test is used to assess the financial performance of selected banks before and after implementation of AI into the core banking operation. Finally, study found that the financial performance of selected banks have increased after adoption of artificial intelligence (AI) compared to before adoption of artificial intelligence (AI).