ARTIFICIAL INTELLIGENCE IN BANKING: SHAPING NEW PATHS FOR FINANCIAL INCLUSION IN INDIA

Abstract

Artificial intelligence (AI) is making it much easier for more people to have access to banking services and also enhancing financial inclusion especially in countries like India. AI is changing how banks do things in three main ways: how they work, what they offer, and how customers and employees experience banking as well as financial services.This article looks at how artificial intelligence (AI) can be used to provide personalized, effective, and conveniently accessible financial services and promoting financial inclusion in India. By eliminating traditional barriers like geographic limitations, a lack of credit history, and resource-intensive operations, artificial intelligence is enabling banks to reach underbanked and unbanked areas. The paper highlights various examples from the Indian banking industry while addressing challenges like infrastructural constraints and data privacy concerns in order to maximize AI's potential for fostering equitable growth and increasing financial inclusion. This research will investigate the current state of AI adoption within the Indian banking sector, analysing recent trends, opportunities, and challenges in enhancing financial inclusion in India. The study will also conduct comparative analyses with international banking practices and identify potential AI-driven advancements yet to be realized in India.

Keywords: Artificial Intelligence, Financial Inclusion, Indian Banking Sector, AI-Driven Financial Services, AI-Powered Finance.