Influence of Artificial Intelligence on Performance of Deposit Money Banks in South-East Nigeria

Abstract

This study investigates the influence of Artificial Intelligence on Performance of Deposit Money Banks in South-East Nigeria. The increasing complexity and competitiveness of the banking sector have made AI a strategic tool, offering applications such as generative AI for task automation and AI biometric verification for operational efficiency. Despite global recognition of AI’s transformative potential, empirical evidence on its impact within Nigerian banks remains limited. Anchored on the Resource-Based View (RBV) theory, the study conceptualizes AI capabilities as strategic resources that, when effectively implemented, can enhance employee commitment, reduce operational costs, and create sustainable competitive advantage. A descriptive survey design was employed, targeting 356 employees across five Tier-1 banks, with 300 valid responses collected. Data were analyzed using descriptive statistics and Pearson Product Moment Correlation via SPSS (version 27) at a 5% significance level. Findings reveal a strong positive correlation between generative AI adoption and employee commitment (r = 0.839, p < 0.01) and a very strong positive correlation between AI biometric verification and operational cost reduction (r = 0.985, p < 0.01). These results indicate that AI adoption enhances both human-centered outcomes and organizational efficiency. The study underscores AI as a strategic asset, suggesting that banks should integrate AI technologies across operations, invest in workforce training, and implement ethical governance practices to achieve long-term growth, employee engagement, and operational excellence.