Chapter 7: Leveraging Artificial Intelligence and Data Analytics for Digital Innovation: Insights from Banking Sector

The growth in new technology, such as Artificial intelligence (AI), data analytics, and digital innovation, has highly impacted banking activities, especially in New York. The present study aims to analyse the role of AI in data analytics and its mediating role linking AI to innovation driven by data analytics. The study focused on operations managers’ key players in deploying these technologies and overlays these gaps to explore their cumulative effect on operational productivity and novelty. The study methods followed the explanatory and deductive design, objective study paradigm employing the structured questionnaire technique. Survey questionnaires are completed by 120 purposively participants whom sampled operation managers from New York banks sector.

Procedures adopted a set of specific questions are used to measure dimensions of AI: machine learning, natural language processing (NLP), automation; of data analytics: predictive analytics, real-time processing, integration; of digital innovation: product, process, and business model innovation. Methods of data analysis have improved, and this has pushed digital advancement. Innovation is where data analytics plays a part; it moderates how effective AI is in helping processes. Further studies should ascertain whether these technologies can be applied in other segments or every bank and banking sector.