The Role of AI in Improving Customer Service, Fraud Detection, and Risk Management in Banking
Year: 2024
Type: article
Abstract: This study investigates how Artificial Intelligence (AI) is revolutionizing customer service, fraud detection, and risk management within the banking sector. As financial crimes grow more sophisticated, traditional detection methods are increasingly falling short, prompting the adoption of advanced AI technologies. AI is significantly enhancing security and operational efficiency through machine learning, predictive analytics, and anomaly detection. The research traces the evolution of fraud detection from manual methods to AI-driven solutions, highlighting various AI techniques such as supervised and unsupervised learning, deep learning, and natural language processing. These technologies are shown to improve not only fraud detection but also customer service via AI-powered chatbots and personalized recommendations, boosting customer satisfaction. Real-world examples demonstrate AI's effectiveness in preventing fraud and managing risks, while ethical considerations emphasize the need for responsible AI practices. Future trends, including Explainable AI (XAI), federated learning, and collaborative efforts between banks, regulators, and tech providers, are explored as part of ongoing advancements in the field. Overall, this review highlights AI’s crucial role in advancing a secure, efficient, and customer-centric banking environment.
Author: Kalyan Gottipati
Language: English
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4403514507