KINNAIRD COLLEDGE FOR WOMEN

NAME: AREEBA BUTT

REGISTRATION NUMBER: W19BACT011
DEPARTMENT: ACCOUNTING AND FINANCE
MAJOR: SEMINAR IN FNANCE
SUBMITTED TO: MAM FIZZA
SUBMISSION DATE: 16 MARCH, 2023
 Banking 4.0: Artificial Intelligence (AI) in Banking Industry &
Consumer’s Perspective

By: Umara Noreen, Attayah Shafique, Zaheer Ahmed and Muhammad Ashfaq
Published: 16 February, 2023

Aim: This study aims to consider the consumer’s perspective on artificial intelligence’s
adoption in the Asian countries.

Purpose: The purpose of this study is to explore the effect of customer awareness, perceived
usefulness, attitude, perceived risk, subjective norms, and knowledge of artificial intelligence
technology regarding intentions to adopt artificial intelligence in banking.

Hypothesis:
Hypothesis 1 (H1): Awareness is proportionate to the intentions to adopt artificial intelligence in
banking.

Hypothesis 2 (H2): Attitude toward AI is proportionate to the intentions to adopt artificial

intelligence in Banking.

Hypothesis 3 (H3): Subjective norms are proportionate to the intentions to adopt artificial
intelligence in banking.

Hypothesis 4 (H4): Perceived risk is negatively proportionate to the intentions to adopt artificial
intelligence in banking.

Hypothesis 5 (H5): Perceived usefulness is proportionate to the intentions to adopt artificial

intelligence in banking.

Hypothesis 6 (H6): Knowledge of artificial intelligence technology is proportionate to the

intentions to adopt artificial intelligence in banking.
Data and Methodology:
 Theoretical Framework:

 Questionnaire Design and Sample: The questionnaire was developed and distributed to
collect data based on a Likert scale ranging from 1, strongly disagree, to 5, strongly agree.
Data are collected from five Asian countries due to time constraints; the five Asian countries
are: Pakistan, China, Iran, Saudi Arabia, and Thailand. The questionnaire comprises seven
demographic factors, which are age, gender, marital status, employment structure,
educational level, and country. A total of 799 customers participated in this survey.

Conclusion:
The findings revealed that the variables (awareness, attitude, subjective norms, perceived
utility, and knowledge of artificial intelligence technology) had a substantial and positive link
with the intention to implement AI in the banking industry. However, perceived risk has a
negative but significant link with AI adoption intentions. Overall, the study's findings will
provide valuable information for strategic decision-making in the banking business. This will
allow banks management to develop a strategy to boost consumer trust, allowing them to
overcome risks and have confidence in adopting digital technology when conducting
transactions.
Future Research:

1. Further research may be conducted on other Asian and European countries.

2. In the future, other financial sectors will also be considered for further study.
3. From a methodological standpoint, in the future, to increase accuracy, it is suggested that
researchers increase the sample size and adopt other methods of data collection, such as field
experiments.
4. Future research can use mediating moderating variables that have a strong impact on AI.