“The Impact of Artificial Intelligence (AI) in the Financial Service Sector of Bangladesh”

Abstract

This study examines the Impact of Artificial Intelligence (AI) in the Financial Service Sector of Bangladesh using a sample of 50 employees across banks, MFS companies, fintech firms, and insurance providers. A quantitative research design was used, supported by descriptive analysis, correlation analysis, and regression modeling. Artificial Intelligence (AI) has become a central component of digital transformation within global financial services. The Bangladeshi financial sector—including banking, insurance, fintech, and mobile financial services (MFS)—is gradually adopting AI to enhance operational efficiency, improve fraud detection, reduce risk, and deliver customer-centric services. However, despite rapid digitalization, empirical research remains scarce. Results indicate that AI significantly improves operational efficiency, enhances fraud detection capabilities, and increases customer satisfaction. The regression model reveals that AI adoption explains 68.7% of the variation in organizational performance. The findings affirm that AI plays a critical role in transforming Bangladesh’s financial ecosystem and highlight the need for increased investment, improved employee skills, and strengthened regulatory frameworks. The study contributes to existing literature and provides strategic recommendations for policymakers, financial managers, and future researchers.