Artificial Intelligence Adoption In Banking Services: A Study On Customer Awareness, Trust, And Usage Behavior In Mandsaur District Of Madhya Pradesh

Abstract

Artificial Intelligence (AI) has become a transformative technology in the banking sector by enabling intelligent customer services, automated decision-making, fraud detection, personalized financial solutions, and enhanced operational efficiency. The rapid expansion of digital banking services has increased the integration of AI-based applications; however, customer awareness, trust, and acceptance toward these technologies differ across geographical and demographic groups. This study aims to examine the level of customer awareness, trust, and usage behavior toward AI-enabled banking services among customers in Mandsaur District of Madhya Pradesh. A quantitative research approach is adopted using a structured questionnaire to collect primary data from banking customers. The study analyzes key factors influencing AI adoption, including perceived usefulness, ease of use, security and privacy concerns, technological awareness, and customer trust. Statistical methods such as descriptive analysis, reliability testing, correlation analysis, regression analysis, and hypothesis testing are applied to evaluate the factors affecting AI banking adoption behavior. The findings indicate that customer awareness, perceived usefulness, and trust significantly influence AI banking adoption behavior. However, security and privacy concerns remain important barriers affecting customer acceptance. The study highlights the need for improving customer awareness, strengthening transparency, enhancing security measures, and building confidence for successful implementation of AI-driven banking services.