Chatbots Adoption Behaviour in Banking: An Empirical Study in South India

Abstract

The digital transformation has impacted all sectors, including banking, and has led to adopting Artificial Intelligence (AI) to improve services and operational efficiency. Driven by artificial intelligence, banks increasingly use chatbot applications to provide quick, efficient, and error-free services, resulting in increased revenues. This study aimed to investigate the determinants of Behavioural Intention to Use (BTU) chatbots in banking using an Empirical Research Design with a sample of 800 respondents from five public and five private sector banks in the South Indian states. The study found that perceived usefulness and ease of use directly influence behavioural intention to use chatbots, while perceived trust has a significant indirect effect. Awareness of Service (AWS) and perceived compatibility also have a substantial indirect impact on behavioural intention to use chatbots, and Perceived Ease of Use (PEU) is the critical factor in the adoption of chatbots in banking; consumers expect chatbots to be helpful, easy to use, compatible with their lifestyle, and accompanied by clear communication on their usage and benefits. Banks can leverage these findings to improve the design and implementation of chatbots and communicate their benefits to customers to enhance their acceptance and usage.

Keywords: Artificial Intelligence, Banking, Behavioural Intention, Chatbot, Consumer Intention

View PDF