UTILISATION OF ARTIFICIAL INTELLIGENCE IN THE BANKING INDUSTRY

Abstract

This paper focuses on relation between the application of Artificial Intelligence in Customer Relationship Management and competitive advantage in Saudi Banks. In view of this, the study applies a descriptive-analytical research approach to analyse the impact of AI in customer data analysis, service delivery and decision making. Participants fill a structured questionnaire comprising of 20 questions which were administered to 200 senior and middle management professionals and 193 was used for data analysis using 
statistical tools. Conclusions reveal a strong positive correlation between the increase in AI use in CRM and achievement of competitive advantage. In particular, AI technologies help to improve customer loyalty, data analytical decision-making, and service orientation, 
prop up organisational flexibility.Nevertheless, criticisms including high implementation costs and the requirement of complex technological environment are still existing. The study puts much focus on ethical concerns, data protection and GDPR regulation, and the further AI solutions for CRM. Recommendations targets promotion of technological use, the challenges in implementation and the use of AI for continuous competitive advantage in the banking sector. This research extends the knowledge of how banking is likely to change with the help of AI and gives concrete recommendations on how to enhance functions associated with the concept of CRM to contribute to the development of the best institutional intentions in the context of the digital turn.