This paper provides a comprehensive review of the pervasive impact of Artificial Intelligence (AI) across the financial services sector, with a specific emphasis on its transformative applications within banking. It explores how AI, encompassing Machine Learning (ML), Natural Language Processing (NLP), and Generative AI (GenAI), is reshaping traditional banking operations, customer engagement, risk management, and strategic decision-making. The study synthesizes current academic research and industry insights to identify key opportunities, practical implementations, and emerging challenges associated with AI adoption. We discuss the benefits of increased efficiency, enhanced accuracy, superior fraud detection, and personalized customer experiences, while also addressing critical concerns such as data privacy, algorithmic bias, regulatory compliance, and the need for explainable AI. The paper concludes with an outlook on future trends and implications for financial institutions, policymakers, and customers in the evolving AI-driven financial landscape.
Prema et al. (Wed,) studied this question.