USING GENAI TO TRANSFORM DIGITAL PRODUCT DEVELOPMENT AND DIGITAL SALES IN THE BANKING SECTOR

Аннотация

INTRODUCTION value from GenAI, estimated at $200 billion to Generative Artificial Intelligence (GenAI) is $340 billion annually—driven primarily by fundamentally transforming the operations of the application in software engineering (digital banking industry, offering unprecedented product development), retail banking and opportunities to redefine traditional approaches to corporate banking [1, 2]. Consequently, there is a product development, customer interactions, and growing academic interest in analyzing key areas the delivery of financial services. According to the where GenAI technology is applied in this sector McKinsey Global Institute, the banking sector and examining its potential for the industry's stands out among various industries with one of transformation. the largest opportunities to generate additional https://www.theamericanjournals.com/index.php/tajet 13 THE USA JOURNALS THE AMERICAN JOURNAL OF ENGINEERING AND TECHNOLOGY (ISSN – 2689-0984) VOLUME 06 ISSUE12 Figure 1. Value created by AI at stake by segment and function in the banking industry [2] not traditionally a core competency for most Companies, including banks, have already begun banks, their methodologies are often outdated and capturing value from generative AI, reflecting its lack agility. Digital tools, such as chatbots for transformative potential across industries. Recent customer interaction, often require lengthy empirical analysis indicates a significant increase development cycles before being introduced to the in GenAI adoption, with 65% of surveyed market and frequently demonstrate limited organizations now reporting regular use—double efficiency in practice. Moreover, traditional sales the rate observed in the previous year [3]. This and service channels, such as bank branches and trend is particularly pronounced in the financial call centers, require significant operational costs sector, where banks are actively exploring and and do not provide 24/7 service availability. This experimenting with generative AI, underscoring its research aims to explore the potential of growing appeal and adaptability to a wide range of generative artificial intelligence to overcome these business processes. challenges and to transform processes related to Despite this progress, banks continue to face digital product development and digital sales, as challenges in meeting the evolving expectations of well as propose an innovative framework for their customers. The research problem lies in the identifying and prioritizing key applications of fact that existing methods of digital banking GenAI within these areas. services and sales do not fully address modern Current Scholarly Perspective demands for personalization, speed, and service quality. As the banking sector undergoes a rapid The preparation of this article involved digital transformation, the development of digital comparative analysis, systematization, synthesis, products has become a critical focus area. and generalization, with a focus on reviewing However, because digital product development is recent scholarly works on the topic. https://www.theamericanjournals.com/index.php/tajet 14 THE USA JOURNALS THE AMERICAN JOURNAL OF ENGINEERING AND TECHNOLOGY (ISSN – 2689-0984) VOLUME 06 ISSUE12 In the literature, various aspects of applying differing perspectives on the optimal pace of GenAI generative artificial intelligence in the banking technology integration: some researchers [4, 11, sector are actively explored. For instance, J. Bellens 13] advocate for rapid, large-scale transformation, and T. Mogi [4] highlight key priorities for the whereas others [5, 12] emphasize the importance successful implementation of GenAI in this sector, of a gradual transition in line with customer emphasizing the need for a systematic approach to readiness. transforming business processes. Expanding on Several aspects remain insufficiently covered, such this idea, U. Noreen and co-authors [9] present the as methodologies for evaluating the effectiveness concept of Banking 4.0, where AI serves as a of GenAI solutions in banking, issues of ethics and central element in the technological evolution of transparency in AI-driven decision-making, the commercial banking services. long-term socioeconomic impacts of widespread Of particular interest are studies on user AI adoption in banking, and challenges related to acceptance of new AI developments. S.S. Bharti and data security and privacy in implementing these colleagues [5] utilize the PLS-SEM method to innovations. Further, detailed research is analyze factors influencing customer perceptions necessary to fill these gaps and provide a of AI technologies in digital banking. Ja.N. Sheth comprehensive understanding of GenAI’s role in and co-authors [12] focus on the potential for AI- transforming the banking sector. driven service personalization in emerging Theoretical foundation of GenAI integration markets, proposing a comprehensive model for into b