Unleashing the Challenges of Chatbots and ChatGPT in the Banking Industry: Evidence from an Emerging Economy

Abstract

Purpose: This chapter aims to unveil the challenges of adopting and using banking chatbots in India and identify the challenges of Chat Generative Pre-trained Transformer (ChatGPT) for future banking.

Need for the study: Unveiling the challenges of chatbots and ChatGPT in the banking industry in India is crucial to understand the limitations and areas of improvement to enhance customer experience, ensure data security, and maintain regulatory compliance.

Methodology: The researchers conducted a narrative review systematically summarising and analysing existing literature on chatbots and ChatGPT, providing a comprehensive overview of the challenges faced in the industry.

Findings: The authors identify perceived risk, platform quality, connectivity and infrastructure, data privacy and security, user education and acceptance, existing legacy systems, and regulatory guidelines as the challenges of adopting chatbots. Additionally, the findings reveal that the challenges posed by ChatGPT in future banking include the potential reduction of traditional banking jobs, linguistic diversity, data privacy and security, ethical considerations and bias mitigation, explainability and accountability, integration with existing banking systems, and user trust and acceptance. However, implementing these new technologies also presents opportunities for individuals with unique human skills, such as critical thinking, empathy, and creativity, which are difficult to replace with technology.

Practical implications: By minimising the challenges of ChatGPT and chatbots, the banking industry could achieve improved customer service, cost efficiency, automation of routine tasks, and 24/7 availability, leading to enhanced customer satisfaction and operational efficiency in the banking industry. Additionally, these artificial intelligence (AI) tools enable data-driven insights, personalised experiences, scalability, and efficient handling of large customer volumes, contributing to better decision-making and enhanced customer engagement.

Citation

Dewasiri, N.J., Karunarathna, K.S.S.N., Rathnasiri, M.S.H., Dharmarathne, D.G. and Sood, K. (2024), "Unleashing the Challenges of Chatbots and ChatGPT in the Banking Industry: Evidence from an Emerging Economy", Kumar, N., Sood, K., Özen, E. and Grima, S. (Ed.) The Framework for Resilient Industry: A Holistic Approach for Developing Economies (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, pp. 23-37. https://doi.org/10.1108/978-1-83753-734-120241002