Abstract The rapid growth of digital banking and online financial transactions has significantly increased the risk of financial fraud in the banking sector. Private banks in India have increasingly adopted Artificial Intelligence (AI)–based systems to enhance fraud detection and prevention mechanisms. The present empirical study examines the effectiveness of Artificial Intelligence in detecting financial fraud in selected private banks in Bangalore, Karnataka. The study is based on both primary and secondary data. Primary data were collected from bank employees through a structured questionnaire, while secondary data were sourced from RBI reports, journals, and published studies. Statistical tools such as percentage analysis, mean score analysis, and correlation analysis were used for data interpretation. The findings reveal that AI significantly improves the accuracy, speed, and efficiency of fraud detection in private banks. However, challenges such as high implementation cost, data privacy concerns, and shortage of skilled professionals persist. The study concludes that AI plays a crucial role in strengthening fraud detection systems and recommends continuous training and regulatory support for effective implementation.
Shilpa et al. (Tue,) studied this question.