Differences in Bankers’ Perceptions towards Artificial Intelligence across Bank Ownership

Abstract

This research paper explores the variation in the perception of bankers towards Artificial Intelligence (AI) based on the ownership of a bank, that is, between public and private sector banks. The study uses an Independent Sample t-test to compare the differences across five key AI dimensions which include customer service, loan approval and credit scoring, fraud detection, operational efficiency, and compliance and risk management. The results show that there are minor differences in the mean scores of perception in the two groups. The bankers of the private sector present a bit higher perception in the area of customer service, fraud detection, and compliance-related applications. On the contrary, the mean scores of the loan approval and operational efficiency are higher in the case of the public sector bankers, showing a stronger adoption of AI in decision making and optimization of the processes in the institutions. Statistically, only operational efficiency is characterized by a significant difference (p < 0.05) with the public sector banks reporting a stronger perception of AI effectiveness in improving workflow and productivity. There are no significant differences in the rest of the dimensions, indicating that there is a convergence point in the adoption and perception of AI across bank ownership types. The research finds that though implementation of AI in the banking sector is increasingly becoming uniform, the public sector banks consider it more beneficial in terms of operational efficiency. On the whole, the findings reflect the increased significance of the AI as a strategic instrument in banking, being independent of ownership.