Exploring the Impact of Artificial Intelligence on Service Quality and Financial Outcomes in Indian Banks

Author(s)	Dr. Penumarthi Veera Venkat Satyanarayana, Mr. Chandala Bhaskar Rajiv
Country	India
Abstract	This study investigated the impact of Artificial Intelligence (AI) applications—specifically Expert Systems, Genetic Algorithms, Artificial Neural Networks, and Intelligent Agents—on both the dimensions of financial services quality (Tangibility, Reliability, Responsiveness, Assurance, and Empathy) and financial performance within the Indian banking sector. Data was collected via a questionnaire distributed to a sample of 384 managers from Indian banks. The survey was conducted online using a snowball sampling technique. For data analysis, Structural Equation Modeling (SEM) was performed with Smart PLS 4.0, complemented by IBM SPSS 26. The results revealed that AI applications generally influence financial services quality; however, Artificial Neural Networks did not significantly affect Tangibility and Reliability. Additionally, Intelligent Agents showed no significant impact on Responsiveness, indicating partial support for hypothesis H1. Furthermore, AI applications demonstrated a significant positive effect on the financial performance of Indian banks, fully supporting hypothesis H2.
Keywords	Financial Performance, Structural Equation Modeling , Customer Queries
Field	Business Administration
Published In	Volume 7, Issue 1, January-February 2026
Published On	2026-01-10
DOI	https://doi.org/10.63363/aijfr.2026.v07i01.2853
Short DOI	https://doi.org/hbk6wn

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