Exploring the challenges and opportunities associated with artificial intelligence in the South African banking industry

Abstract

This study investigates the challenges and opportunities introduced by artificial intelligence (AI) in the South African banking industry. Through a comprehensive exploration of current AI applications, challenges in adoption, and the impact on the workforce, the researcher provides valuable insights into the nuanced landscape of AI in banking. Drawing on literature and participant responses, the study identifies the prevalent use of AI-driven chatbots and humanoid robots in customer service, along with challenges such as data privacy concerns and a scarcity of skilled professionals. Findings confirm workforce transformation and potential job displacement due to automation yet reveal a proactive approach by banks in upskilling employees for more complex roles in the AI-driven environment. The study concludes with a set of recommendations, emphasizing the establishment of a robust legal and compliance framework, investment in expertise development programs, transparent communication strategies, leadership education, and strategic workforce transformation. While acknowledging limitations, including a small sample size and regional focus, the study contributes to the understanding of AI in the South African banking industry. Recommendations for future research include expanding the participant pool for a more comprehensive perspective and exploring additional connections between organizational change management techniques and AI adoption strategies.