IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 22, Issue 5. Ser. IV (May. 2020), PP 41-49 www.iosrjournals.org DOI: 10.9790/487X-2205044149 www.iosrjournals.org 41 | Page Effects of Artificial Intelligence on Business Performance in the Banking Industry (A Study of Access Bank Plc and United Bank for Africa-Uba) ELEGUNDE, Ayobami Folarin (Ph.D.), SHOTUNDE, Oladimeji Idris Abstract Purpose: This study focused on the pivotal role that artificial intelligence had played in enhancing business performance, especially in the areas of achieving business objectives. This paper examined the effects of artificial intelligence on business performance. Design/Methods/Approach: Survey research design was used in this study. 200 copies of questionnaires were administered to employees and customers of Access Bank Plc and United Bank for Africa (UBA). Simple random sampling technique was adopted in selecting respondents, and content validity was employed to validate the research instrument. Data collected were analyzed with regression analysis. Findings: Customer satisfaction, service quality, competitive advantage and employees' efficiency; as non- financial business measures were all discovered and proven to be aided by artificial intelligence. Findings aligned with previous related studies on artificial intelligence (although which centered on financial objectives), and its effect on business. The R 2 value of 0.574, 0.445, 0.295 and 0.386 explained the level of variation in each of the sampled variables explained by AI. Practical Implications: Banks and other technology receptive firms in Nigeria should push for full adoption of AI, as it brings greater value, efficiency and effectiveness to business. However, firms should be strategic and purpose driven when adopting AI, in order to get the best from its application in their respective firms. Originality/Value: This research is the original works of the authors. The research used primary data in identifying the nexus between AI and non-financial business performance; thus, producing new knowledge and revelations as to how AI helps in achieving non-financial business objectives. Keywords: Artificial Intelligence, Customer Satisfaction, Service Quality, Competitive Advantage, Employee Efficiency, Technology, Business and Performance. --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 07-05-2020 Date of Acceptance: 21-05-2020 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction The performance of businesses is very crucial in predicting, ascertaining and evaluating the level or extent of growth and outcomes in business organizations. The performance of a business, whether financial or non-financial, provides a yardstick upon which business stakeholders can gauge and measure the degree of effectiveness, efficiency, overall productivity, as well as profitability of such organization or business enterprise. To stimulate and augment the performance of a firm, business-minded stakeholders have seen and witnessed the influx of sophisticated technologies, mechanisms and inventions, all targeted at improving business performance, supplementing business operations with respect to human deficiencies and introducing new ways of doing things, which is embedded in contemporary issues within Artificial Intelligence. The emerging technologies are said to have a great potential to transform the ways of living of human lives and the business operating models of companies all over the world. It becomes important to study both the capabilities and limitations of machine intelligence and its potential impact in human life, society and business. (Soni, Sharma, Singh & Kapoor, 2018). Thus, Artificial Intelligence (AI) serves as an offshoot of these technologies and inventions. Technologies and inventions seem to be the main engine of an improved standard of living in the contemporary world today, and judging from this assumption, businesses are very much included. They are not in isolation, neither are they exempted. AI is a field of science and technology and its purpose is to develop computers that can think, see, hear, walk, talk and interestingly, feel like humans. A major thrust of artificial intelligence is the development of computer functions normally associated with human intelligence such as reasoning, learning, and problem solving (O’Brein, 2003). Intriguing questions abound about the possibility of intelligent thinking machines. For example, British AI pioneer Alan Turing in 1950 proposed a test for determining if machines could think. According to the Turing test, a computer could demonstrate intelligence if a human interviewer, conversing with an unseen human and an unseen computer, could not tell which was which, when presented with both scenarios (O’Brein, 2003).