Underused Perceptivity and Constraints in Adoption of Artificial Intelligence in Disbursement of Loans and Advances: A Conceptual Approach in the Kerala Banking Industry
DOI:
https://doi.org/10.31305/rrijm.2026.CI.v11.n06.008Keywords:
Artificial Intelligence, Disbursement of loans, Banking industryAbstract
The financial services sector has undergone a transformation thanks to the quick development of AI technologies, which present new chances to improve customer service, streamline risk management procedures, and improve banking operations. In light of this, this article investigates the underutilized application of artificial intelligence (AI) in Kerala's banking industry for loan and advance disbursement. To collect and evaluate pertinent data, this study uses an exploratory qualitative research methodology. Keyword-based searches using Google Scholar, Google Search, and AI-powered GPT models are used to find the information. During collection, the data is methodically examined and interpreted in accordance with the goals of the study. The study is to estimate future trends and opportunities, examine stakeholder viewpoints, assess market positioning, and identify important variables influencing current practices. In summary, the paper aims to offer practical insights and strategic recommendations for investors, financial institutions, and regulators to successfully manage and harness technology innovations, promoting resilience and sustained growth within India's changing banking sector. The purpose of this conceptual paper on secondary data is to provide a thorough knowledge of the aforementioned phenomenon and its underutilized perceptual dimensions of AI to improve efficiency, lower risks, and streamline operations. The application of AI in the banking sector in Kerala is still underutilized.
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