Artificial Intelligence has emerged as one of the most influential technological developments shaping the functioning of financial services across the world. In India, the financial services sector has undergone rapid digital transformation driven by increased internet penetration and growth of digital payments. In this evolving environment, Artificial Intelligence is increasingly being adopted by banks, insurance companies, non-banking financial companies, and fintech firms to improve operational efficiency, enhance customer experience, strengthen risk management, and support data-driven decision-making. The present study examines the adoption of Artificial Intelligence in financial services using secondary data sources such as academic literature, industry reports, regulatory publications, and policy documents. The paper focuses on major application areas of AI in Indian financial services, including customer service, credit assessment, fraud detection, investment advisory, and regulatory compliance. It also analyses the benefits of AI adoption along with challenges related to data privacy, ethical concerns, regulatory uncertainty, and skill gaps. The study concludes that while Artificial Intelligence holds significant potential to transform financial services in India, its effective and inclusive adoption requires responsible governance, transparency, and sustained capacity building.
Babasaheb Yashvant Saymote (Mon,) studied this question.