Artificial Intelligence and Operational Efficiency of Deposit Money Banks in Lagos State, Nigeria

This chapter examines the effect of Artificial Intelligence (AI) on the operational efficiency of deposit money banks in Lagos State, Nigeria. The study identified the types of AI technologies that are used by banks and examined the impact of the different types of technologies on the operational efficiency of five deposit money banks, namely: First Bank of Nigeria, United Bank of Africa, Guaranty Trust Bank, Access Bank, and Zenith Bank, all public liability companies with headquarters located in the Lagos metropolis. The study adopted a survey research design. Copies of the questionnaire were administered to 450 regular employees selected randomly from the five banks. The study revealed that deep learning (β = 0.400, t = 5.445, p<0.05); Automation (β = 0.202, t = 2.143, p<0.05) and fraud detection (β = 0.460, t = 7.095, p<0.05) had positive and significant effects on the operational efficiency of the selected deposit money banks, while chatbots had a positive but insignificant effect. The study concluded that artificial intelligence significantly contributed to the operational efficiency of the selected deposit money banks in Nigeria. The authors recommend that deposit money banks should effectively make use of artificial intelligence, especially deep learning, automation, and fraud detection, to improve organizational efficiency.