Purakala (UGC Care Journal) ISSN:0971-2143 Vol-31-Issue-13-April-2020 61 A STUDY OF ADOPTION OF ARTIFICIAL INTELLIGENCE IN BANKING SECTOR Dr. Rajashri S Deshpande Asst. Prof. Mulund College of Commerce Email: drrajashri2014@gmail.com Abstract: A wide implementation of high-end technology like Artificial Intelligence will create large number of challenges and bring opportunities to spread banking business. Successful implementation of AI depends on right data base and skillful human resource. Digitalization of banking has developed customer relationship with the help of improved banking performance but may bring reduction in bank branches operating in different parts of country. Use of Information technology such as Artificial Intelligence is playing a pivotal role in this area. The present paper is based on the technological upgradation to be adopted in banking sector and its effect. Various articles are referred to study the concept and research papers on digitalization created base. The paper has highlighted the use of AI in banking sector. Data of 58 respondents through structured questionnaire was collected and analyzed with the help of statistical tools like standard deviation and F-test. Key Words: Artificial Intelligence, Robots, data Analytics 1.0 INTRODUCTION Digital banking technologies and instruments catering to needs of customers are significantly rising at a robotic speed and banks are transforming earnestly.People do not require to go to branch to withdraw and deposit funds, rather need of cash is reducing day by day. One need to keep mobile safe than holding cash. This change is further enhanced by Fintech companies which are drastically changing payment patterns with the help of IT. Banking customers have moved from ATM to Paytm and further to Payment banks for remittance and such payment mechanisms are bringing paradigm shift at a large. These changing faces of banking is possible due to use of Artificial intelligence used by Fintech companies and even banks have outsourced these functions and making banking suitable to tech- savvy customers. Tech-savvy customers data if used wisely can create further business opportunities to banks. Digitalization of banking has developed customer relationship with the help of improved banking performance but may bring reduction in bank branchesoperating in different parts of country. Use of Information technology such as Artificial Intelligence is playing a pivotal role in this area.