Emerging Trend of Artificial Intelligence (AI) in Financial Services in India

Emerging Trend of Artificial Intelligence (AI) in Financial Services in India

Mrs. Amruta Shailesh Patil

Assistant Professor

Department of Commerce and Management

Ganpatrao Arwade College  of Commerce, Sangli 

Email ID- amrutapatil0001@gmail.com

ABSTRACT

Artificial Intelligence (AI) is rapidly transforming the financial services sector in India, reshaping how banks, insurance companies, fintech firms, and investment platforms operate. By leveraging advanced technologies such as machine learning, natural language processing, and predictive analytics, AI enables faster decision-making, personalized customer experiences, improved risk management, and operational efficiency.In India, the adoption of AI in financial services is being driven by multiple factors — a growing digital economy, increasing internet penetration, the rise of fintech start-ups, and supportive government initiatives like Digital Indiaand India Stack. Financial institutions are integrating AI into areas such as fraud detection, credit scoring, algorithmic trading, chatbots for customer service, and automated loan processing.The impact is particularly significant in expanding financial inclusion, as AI-powered solutions help reach under banked and rural populations by assessing creditworthiness using alternative data and enabling low-cost digital services. With regulatory bodies like the Reserve Bank of India (RBI) encouraging innovation while maintaining security and compliance, AI is poised to play a central role in shaping the future of India’s financial ecosystem.

Keywords: Transforming, Advanced, Personalized, Automated, Creditworthiness, Compliance etc.

DOI link – https://doi.org/10.69758/GIMRJ/2509I9VXIIIP0040

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