The Effect of Artificial Intelligence on

Service Quality and Customer

Satisfaction in Jordanian Banking
Sector
Author:
Reem Al-Araj, Hossam Haddad, Maha Shehadeh, Elina Hasan,
Mohammad Yousef Nawaiseh (2022)
Submitted By:
Dipa Deb
Reg No: 2018731044 (M/1)
Introduction
 This study will raise awareness about the usefulness of AI among the decision makers in
Jordanian financial services industry because banking industry’s reputation is in danger
due to the customer’s fears for the safety of their data and financial transactions. Despite
the abundant research on client-perceived banking service quality, no study has examined
the impact of AI on service quality and customer satisfaction. AI improves the banking
experience for millions of clients and employees by providing credit score checking,
system failure prediction, emergency alarm systems, fraud detection, phishing website
detection, liquidity risk assessment, customer loyalty evaluation and intelligence systems
and so on.This study emphasizes the importance of AI and it’s application on the service
quality provided by Jordanian banks for their customer satisfaction. The primary
objective of this study was to examine the influence of artificial intelligence on
service quality in the Jordanian banking sector.
 Literature Review
Author Objectives Findings

Haddad, H. Find out the effects of Artificial Intelligence Positive relationship between AI and AIS
(2021) on the Accounting Information Systems (AIS) & identify the need to enhance the use of
in Jordanian banking sector AI in banking sector to raise the
excellence.

Haddad, H. and Find out the effect of Service Quality SQ has significant and positive correlation
Miklos (2019) dimensions on customer satisfaction in the with customer satisfaction
Jordanian banking sector

Naumov,N. The impact of AI & service automation in The implementation of AI & service
(2019) Travel, Tourism & hospitality automation is increasingly important to
gain competitive advantages.
Methodology
 Data collected from Jordanian commercial banks in 2022. Jordan has three
kinds of banks: commercial, Islamic and international.

 Sample size was consisted of 270 respondents who were from varied
areas.

 The SERVQUAL model was used to measure customer satisfaction and

comprises five dimensions: tangibility, responsiveness, empathy, assurance
and dependability.

 All of the data was analyzed using the SPSS program.

 Hypothesis
 (H1.1): There is no statistically significant effect at the significance level (0.05≥α)
between artificial intelligence and the service quality in the Jordanian banking
sector.

 (H1.2): There is no statistically significant effect at the significance level (0.05≥α)

between artificial intelligence and customer satisfaction in the Jordanian banking
sector.

 Independent Variables: Artificial Intelligence

 Dependent variables: Service Quality, Customer Satisfaction, Tangibility,

Reliability, Responsiveness, Assurance, Empathy.
 Findings
r=.777 r = .753 Tangibility
Service Quality

r =.710 Reliability
Artificial
Intelligence (AI)
r =.722 Responsivene
ss
Customer
r= .538
Satisfaction
r=.607 Assurance

r=.594 Empathy

Fig. 1: Artificial Intelligence on service quality and customer satisfaction with correlation values.
 Discussion
 This research suggest that the demand for artificial intelligence in the Jordanian
banking sector is equally essential for the customers.
 KMO model has 0.910 meaning that the factor analysis for the selected variables is
appropriate for the data.
 Thus, there should be an optimal balance between virtual and human agents based
on the customers' requirements and preferences.
 Further, this study found practical implications of using AI in banking, particularly
those related to customer perception.