AI is increasingly transforming the Indian banking sector by enhancing customer understanding, improving efficiency, and enabling personalized services at scale.

The adoption of AI in financial services is driven by goals like improving customer experience, boosting productivity, reducing operational costs, ensuring compliance, and developing new products.

These advancements are particularly beneficial for new-to-credit customers and those with thin credit files, helping them enter the formal financial system.

Innovative AI-powered credit scoring models are expanding access to credit for underserved populations by utilizing non-traditional data sources such as utility payments, mobile usage, GST records, and e-commerce transactions.

AI chatbots are revolutionizing customer service in banking by handling routine inquiries 24/7, providing faster resolutions, and freeing staff to focus on more complex issues.

The global AI market in financial services is rapidly growing, with the generative AI segment expected to exceed Rs 1.02 lakh crore (around USD 12 billion) by 2033, growing at an annual rate of 28-34%, and similar growth is projected for India.

The Reserve Bank of India predicts that the generative AI segment will generate over Rs 1.02 lakh crore (approximately USD 12 billion) by 2033, highlighting significant revenue growth potential for the sector.