Artificial intelligence impact on banks clients and employees in an Asian developing country
| DOI | https://doi.org/10.1108/JABS-09-2020-0376 |
| Published date | 22 June 2021 |
| Date | 22 June 2021 |
| Pages | 267-278 |
| Subject Matter | Strategy,International business |
| Author | Nada Mallah Boustani |
Artificial intelligence impact on banks
clients and employees in an Asian
developing country
Nada Mallah Boustani
Abstract
Purpose –The purpose of this paper is to discuss the application of artificial intelligence (AI) in
banking sector, its impact on banks employees and consumer behavior alike when buying financial
services and the importance of (AI) for delivering social services in a western Asian developing
country: Lebanon. The author tried to respond to the following problematics: Would AI be able to
replace man power in customer service? and would AI change the job of the banker and render the
bank more profitable?
Design/methodology/approach –The data collected and analyzed was used in a quantitative
research-based modelswith the application of hypothesis regression models. The resultsobtained has
helped despitethe fact of its innovative framework,AI cannot replace the role of humanswhen it comes to
client’sinteractions with banks employees.
Findings –AI elevates the quality of banking transactions to an upper edge. Some of the technical
banking jobs might be in jeopardy with AI, as the technology can be easily replaced with human
resources, but when emotional intelligence is required for banks clients/employee’s relationship
management,AI has been found with no ability to supersede.
Research limitations/implications –Researchers in the future canalso compare large banks called
alpha banks to smaller banks in the same developing country to further test the possibility of adopting
innovation and changethrough AI in different sizes of banks with largernumber of employees, financial
resourcesand corporate clients.
Practical implications –Fears regarding impact on employment were detected, AI could render
many banks’ jobs obsolete in the coming years, asserting that AI and robotics ‘‘reduce the need
for staff in roles such as back office functions. Data suggests that the proliferation of AI could be
accompanied by a rise in banking jobs. It may also be the case that only the most mundane jobs
such as data entry will be sacrificed for machine superiority. While a rise in job numbers
associated with higher AI-adoption rates seems ideal, some evidence suggests that most financial
institutions are not yet fully confident in how to effectively apply the technology for the best results
but at the same time seemed to be receptive to using AI and machine learning in their
organization.
Social implications –This study was conducted and limited to one developing Asian country, it
would be useful to stretch this study covering other countries in the region to dive into more
diversified results that could trigger researchers to compare more the adoption of AI in Asian
countries and evaluating its impact with respect to different countries size and/or level of
development in addition to other demographics and criteria.
Originality/value –Financial institutions are increasingly using artificial neural ne twork systems
to detect fraud and charges that do not meet the standard. The AI is used to: organize
transactions; keep accounts; invest in stocks; optimize portfolios, etc. Reducing the number of
frauds and financial crimes in Lebanon by monitoring user behavior to detect abnormal changes
or anomalies in addition to the possible rectification of human economic behavior in the As ian
region, this could add a great value and high originality to the research.
Keywords Consumer behavior, Employability, Artificial intelligence
Paper type Research paper
Nada Mallah Boustani is
based at the Faculty of
Business, Saint Joseph
University, Beirut, Lebanon.
Received 24 September 2020
Revised 13 November 2020
15 December 2020
Accepted 16 December 2020
DOI 10.1108/JABS-09-2020-0376 VOL. 16 NO. 2 2022, pp. 267-278, ©Emerald Publishing Limited, ISSN 1558-7894 jJOURNAL OF ASIA BUSINESS STUDIES jPAGE 267
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