Published Paper Details:

Artificial intelligence (AI) is steadily reshaping financial services by making operations more automated and strongly driven by data. Tools such as machine learning, natural language processing (NLP), predictive analysis, and robotic process automation (RPA) allow banks and other financial organisations to perform tasks faster, reduce errors, control risks, and improve the way they interact with customers. These technologies are commonly applied in areas such as identifying fraudulent transactions, assessing creditworthiness, and providing investment-related guidance. AI also supports regulatory activities through Reg Tech applications and helps widen access to financial services through Robo-advisory platforms, thereby encouraging innovation and financial inclusion. However, along with these advantages, several challenges remain, particularly concerns about data protection, ethical use of intelligent systems, and limited transparency in algorithm-based decisions. This study focuses on understanding the effect of AI on operational performance, customer experience, and governance practices, while also discussing the opportunities, limitations, and future scope of AI in achieving sustainable digital transformation in the financial sector. Keywords: Artificial Intelligence, Machine Learning, Predictive Analytics, Natural Language Processing, Robotic Process Automation, FinTech, Reg Tech, Risk Control, Financial Inclusion, Ethical Use of AI, Data Protection, Digital Change. Artificial intelligence (AI) is steadily reshaping financial services by making operations more automated and strongly driven by data. Tools such as machine learning, natural language processing (NLP), predictive analysis, and robotic process automation (RPA) allow banks and other financial organisations to perform tasks faster, reduce errors, control risks, and improve the way they interact with customers. These technologies are commonly applied in areas such as identifying fraudulent transactions, assessing creditworthiness, and providing investment-related guidance. AI also supports regulatory activities through Reg Tech applications and helps widen access to financial services through Robo-advisory platforms, thereby encouraging innovation and financial inclusion. However, along with these advantages, several challenges remain, particularly concerns about data protection, ethical use of intelligent systems, and limited transparency in algorithm-based decisions. This study focuses on understanding the effect of AI on operational performance, customer experience, and governance practices, while also discussing the opportunities, limitations, and future scope of AI in achieving sustainable digital transformation in the financial sector.