Harnessing artificial intelligence in banking: integration of product technology efficacy and perceived attributes into the UTAUT model

Purpose Using the Unified Theory of Acceptance and Use of Technology (UTAUT) model, this study aims to investigate the variables that influence bank customers’ acceptance of AI-enabled applications in Malaysia. Design/methodology/approach A purposive sampling approach was used. A survey of 341 Malaysian bank customers was conducted to examine the determinants of AI-enabled banking application acceptance. The literature on the variables influencing customers’ acceptance of AI-based services was also assessed using the UTAUT model to identify the key factors that predict the acceptance of AI-based services Findings The study’s findings showed that the primary factors influencing the adoption of AI-based services are performance expectancy, social influence and effort expectancy. Additionally, product technology efficacy emerged as a significant determinant of bank customers’ acceptance of AI. On the other hand, perceived risk (PR) was not found to be a significant predictor of acceptance of AI-enabled banking services among bank customers in Malaysia. Research limitations/implications This study’s theoretical extensions and practical implications benefit both Malaysian AI-based service providers and future researchers. One limitation of this study is that the respondents were selected from bank customers in only one region of Malaysia; therefore, the findings may not provide a comprehensive representation of all consumers nationwide. Originality/value The UTAUT model is extended within the context of AI adoption. Despite the potential benefits, there is currently little research on the use of AI in banking. This paper provides a new and comprehensive conceptual framework that integrates the UTAUT model with the aim of introducing an AI-specific construct. It also identifies product technology efficacy as a novel determinant of AI acceptance. Additionally, banking financial institutions are referred to as financial institutions in this study. As product technology efficacy remains underexplored in the literature, this study serves as a useful reference for academicians, policymakers and future researchers.