The future of Artificial intelligence in Swedish banking - Enhancing customer relations with an Economic Butler

Abstract

The study examines artificial intelligence (AI), its impact on customer relations and its pillars consisting of trust, personal service, loyalty, and satisfaction within the Swedish banking sector. The primary objective is to explore how AI-technologies can be utilized, assess the potential benefits, and identify the opportunities and challenges associated with the implementation of AI in the Swedish banking sector. AI is utilized to streamline operations and offer personalized customer interactions through the use of AI-innovations and data analytics. These technologies are reshaping the Swedish banking sector by increasing efficiency and enabling more customized service offerings. However, the adoption of AI also entails challenges, including concerns regarding privacy, security and the potential reduction of physical customer interactions. The study is based on a qualitative method with semi-structured interviews for data collection. The interviews were conducted with a total of five experienced banking professionals from four different banks in order to take different perspectives into account and to identify the practical impacts of AI to address the existing knowledge gap about its effects on customer relations. The study highlights that AI improves accessibility and inclusion in banking by automating time-consuming tasks. It is apparent that the development could progress to the point where AI may serve as an economic butler. However, AI entails risks that can potentially deter customers and contribute to bias, emphasizing the need for data monitoring. Despite significant advances in AI-technology, the findings underscore the need for human interaction to effectively serve complex customer needs. Moreover, the study advocates a hybrid model that takes into account AI with personal service, ensuring trust and enhancing customer relations in modern banking.