Comparative Study of AI Adoption in Public vs. Private Indian Banks

Abstract

Currently artificial intelligence (ai) is gaining momentum as a transformative force within the Indian banking industry particularly in urban regions such as Delhi NCR. This study evaluates ai adoption in select public sector banks vis-à-vis private sector banks using primary survey data (n=289). Findings indicate that ai adoption rates and corresponding levels of service efficiency and customer satisfaction are higher amongst private sector banks. Statistical techniques used such as percentage analysis, mean scores, chi-square test & t-test confirmed statistically significant difference between two types of banks. Correlation and regression analyses indicated strong positive relationship between ai driven efficiency & usage with respect to customer satisfaction. The findings also highlighted the supportive roles played by awareness and ease-of-use in improving overall banking experience. Thus, the findings suggest that private sector banks possess competitive advantage primarily due to superior technological infrastructure & faster innovation adoptions. Conversely public sector banks are gradually advancing but need strategic improvements to keep pace with digital transformation. The research contributes to knowledge pertaining to growing significance of ai in influencing customer centric banking services. The study offers useful understandings for bank management to enhance ai integration for sustainable growth & improved service delivery.