A TEMPORAL ANALYSIS OF AI’S INFLUENCE ON FINANCIAL PERFORMANCE: INSIGHTS FROM KOTAK AND SBI BANKS USING FINANCIAL RATIO ANALYSIS
DOI:
https://doi.org/10.69980/6pgsh934Keywords:
Artificial Intelligence (AI), Financial Ratio Analysis (FRA), Performance Disparities, Temporal SegmentsAbstract
The objective of this study is to explore the role played by artificial intelligence (AI) in improving the performance of the banks. The study focused on Kotak Bank and SBI Bank over the period of 2014-2023 by analyzing Financial Ratio Analysis (FRA). The key indicators for the purpose identified included profitability, liquidity and credit performance ratios to know the impact of AI on a bank’s financial performance. The study would further investigate whether there is a difference in the performance between two periods- namely pre-AI adoption (2014-2018) and post AI adoption (2019-2023). Student t-test is used to test the hypothesis and to validate the argument of significant variation in financial performance across the two temporal segments. It was found that use of AI has affected specific aspects of operational efficiency and financial performance for the given time periods. It can be inferred that change in performance metrics may be associated with adoption of AI by the sample banks in the field of fraud detection, customer segmentation, personalized financial services, risk management, resulting into improved profitability and value to shareholders.
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