This study explores the role of Artificial Intelligence (AI) as a catalyst for transforming customer experience (CX) in the European banking sector. It analyzes how AI technologies, including Machine Learning, Natural Language Processing, and large language models, are reshaping internal banking processes and customer-facing services. By integrating data from expert interviews and survey responses, the research examines the current AI landscape, its applications, and the impact on customer satisfaction and personalization. Additionally, the study addresses regulatory challenges, ethical considerations, and data privacy issues influencing AI adoption in banking. Through a mixed-methods approach combining abductive, deductive, and inductive methodologies, the findings reveal that AI is a strategic tool for banks seeking to enhance operational efficiency and deliver more personalized customer experiences. However, AI implementation varies, with some banks cautiously experimenting and others fully integrating AI into customer interactions. The research also highlights challenges of aligning AI innovations with regulatory frameworks, maintaining transparency to ensure customer trust, and managing organizational change. The conclusion emphasizes that while AI will not replace human interaction, its role in augmenting human expertise is crucial. A hybrid approach, where AI supports but doesn't fully automate customer-facing services, is seen as the future direction for banks. By adopting this model, banks can improve personalization, efficiency, and customer engagement while addressing concerns about data security, transparency, and bias. This analysis offers valuable insights for stakeholders in the European banking sector, guiding AI-driven transformation.
Date of Award | 17 Oct 2024 |
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Original language | English |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | Peter V. Rajsingh (Supervisor) |
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- Artificial intelligence
- Customer experience
- Banking
- AI adoption
- Digital transformation
- Machine learning
- Financial services
- AI governance
- AI ethics
- Data privacy
- Personalization
- Fintech
- European banking sector
- Customer engagement
- Mestrado em Gestão e Administração de Empresas (mestrado internacional)
Artificial intelligence as a driver of change in customer experience: a study of the European banking sector
Rührlechner, N. (Student). 17 Oct 2024
Student thesis: Master's Thesis