The Role of AI in Improving Customer Service, Fraud Detection, and Risk Management in Banking |
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| © 2024 by IJCTT Journal | ||
| Volume-72 Issue-9 |
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| Year of Publication : 2024 | ||
| Authors : Kalyan Gottipati | ||
| DOI : 10.14445/22312803/IJCTT-V72I9P115 | ||
How to Cite?
Kalyan Gottipati, "The Role of AI in Improving Customer Service, Fraud Detection, and Risk Management in Banking," International Journal of Computer Trends and Technology, vol. 72, no. 9, pp. 102-107, 2024. Crossref, https://doi.org/10.14445/22312803/IJCTT-V72I9P115
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.
Keywords
Artificial Intelligence (AI), Banking sector, Customer service, Fraud detection, Risk management, Chatbots, Personalized recommendations, Predictive analytics, Data privacy, Ethical considerations, Machine learning.
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