Revolution of financial services: analysing the impact of ai on banking sector

Purpose – This study explores the transformative impact of artificial intelligence (AI) on banking, insurance, and investment firms within the financial services sector. It aims to examine the challenges faced by businesses and establish clear research objectives.Design/methodology/approach – The study adopts a descriptive research methodology, leveraging both primary and secondary data sources. Standardised questionnaires and expert interviews provide in-depth insights into AI adoption within the Indian banking sector.Findings – The study identifies key applications of AI in financial services and evaluates its impact on operational efficiency, client experience, and risk management. A conceptual framework is proposed to assess AI’s benefits and limitations, particularly in relation to workforce dynamics. The research highlights concerns regarding job displacement, skills development, and the evolving interaction between AI systems and human workers.Practical implications – The findings offer actionable insights for financial institutions seeking to optimise AI integration. The study suggests strategies for balancing automation with human expertise, addressing workforce transitions, and enhancing service delivery.Originality/value – This research contributes to the existing literature by providing a structured analysis of AI's role in financial services. It offers empirical evidence on its implications for operational processes and workforce management, with a particular focus on the Indian banking sector.