ABSTRACT This research presents a comprehensive empirical assessment of Artificial Intelligence (AI) adoption in the India’s Banking, Financial Services, and Insurance (BFSI) sector, examining its operational transformation and strategic implications. Through systematic analysis of current AI implementations, this study investigates how financial institutions are leveraging AI technologies to enhance operational efficiency, improve customer experience, and strengthen risk management frameworks. The research employs a mixed-methods approach, combining quantitative analysis of industry data with qualitative assessment of AI adoption patterns across 128 responding Indian BFSI institutions from a sample frame of 165 institutions during January 2023 March 2024, achieving a 77.6% response rate. Key findings reveal that 69% of Indian banks have implemented AI/ML solutions, resulting in 30-40% reduction in operational costs and 50% improvement in processing times. The study identifies critical challenges including data privacy concerns (cited by 62% of institutions), skill gaps in AI expertise (70% of institutions), and regulatory compliance complexities. This research contributes to operations research literature by providing empirical evidence of AI’s transformative impact on financial services operations and proposing a framework for strategic AI implementation in emerging economies.
Gupta et al. (Wed,) studied this question.
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