How artificial intelligence is reshaping the commercial banking industry

The paper investigates the transformative role of artificial intelligence (AI) in commercial banking, focusing on its applications in back-end processes such as risk management, compliance automation, and fraud detection. In recent years, the banking sector has increasingly adopted AI-driven solutions to enhance efficiency, reduce operational costs, and improve payment security and customer targeting. However, the integration of AI into business operations and client interactions raises critical concerns related to transparency, privacy, and regulatory compliance. While AI offers substantial benefits, including lower lending losses and streamlined internal processes, its adoption requires careful oversight to ensure trust and acceptance. This article reviews existing literature on AI in commercial banking, examining key applications, challenges, and future research directions.