Implementation of Artificial Intelligence for Financial Process Innovation of Commercial Banks

Purpose: The purpose of this study is to investigate and illuminate the transformative potential of artificial intelligence (AI) in the context of enhancing financial services within Jordanian commercial banks, with a specific focus on credit risk management. By researching into the applications of AI within this sector, the study aims to provide insights into how AI technologies can reshape traditional banking practices and improve the overall efficiency and effectiveness of credit risk management processes. Theoretical framework: The study is grounded in the theoretical framework of technological innovation and strategic management. It draws from the literature on AI adoption in the financial industry and its implications for operational efficiency, risk assessment, and customer experience. Additionally, the study incorporates concepts related to data analysis, machine learning, and predictive modeling as key components of AI-driven transformation within the banking sector. Method/design/approach: To achieve the research objectives, a systematic research design is employed, utilizing survey methods as the primary data collection tool. A sample of 143 employees from major banks located in Amman, Jordan, is selected for participation. The survey encompasses questions designed to gather information about the current state of AI integration, challenges faced, and potential benefits within credit risk management and other financial services. This quantitative approach allows for the collection of structured data that can be statistically analyzed to uncover trends and patterns. Results and conclusion: The findings of the study highlight the substantial potential of AI integration in revolutionizing the operations of Jordanian commercial banks. AI technologies enable more accurate credit assessment, precise analysis of market risks, enhanced financial forecasting capabilities, robust validation of risk models, and advanced evaluation of creditworthiness. Furthermore, the study reveals that AI offers the opportunity for personalized customer service solutions, thereby improving the user experience and guiding customers toward suitable financial services. In conclusion, the study underscores the positive impact of leveraging AI-driven innovation on financial performance and profitability within Jordan's banking sector. Research implications: This study has implications for academia and the banking industry, contributing to knowledge about AI's strategic