Customer loyalty in the age of AI: A comprehensive study on the mediating effect of satisfaction in digital banking

Mohd Arif Hussain (), Sudha Vemaraju () and Apeksha Garg ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 4, 1957-1971

Abstract: In this digital environment, Artificial Intelligence describes the technology that is considered to have changed the global economy the most. It is estimated that by 2030, AI will contribute approximately $15.7 trillion to the global economy due to its steady expansion in scope, application, and environmental protection. Achieving sustainable development goals depends on sustainable customer loyalty, as it significantly impacts the circular economy and social responsibility. The research aims to examine satisfaction as a mediator to understand how the modified Artificial Intelligence (AI) technology acceptance dimensions relate to customer loyalty in digital banking services. This study collected valid responses from 380 respondents through a cross-sectional survey in Hyderabad, India. A measurement model, developed using a survey questionnaire and partial least squares path modeling, was used to verify the measured items, test hypotheses, and evaluate the correlations among various constructs. Regarding digital banking services, satisfaction fully mediates the relationship between the modified AI Technology Acceptance Model (TAM) factors, perceived usefulness, perceived ease of use, perceived risk, perceived trust, and perceived benefit and customer loyalty. However, the results indicate that AI acceptance factors and customer loyalty are partly mediated by satisfaction. The relationship between AI acceptance factors, customer loyalty, and satisfaction is not moderated by gender. Conversely, age acts as a mediating factor in the relationship between satisfaction, loyalty, and AI acceptance factors. According to the study's findings, deploying AI technology in sustainable financial services is essential for providing clients with positive experiences, which influence customer satisfaction and loyalty, thereby attracting customers to use these services. The study demonstrates how marketing managers can leverage modified AI acceptance factors to promote digital banking services and foster favorable customer loyalty.

Keywords: AI acceptance factors; Artificial Intelligence; Digital Banking; Partial Least Square Path Modeling method; Satisfaction and Customer Loyalty; Sustainability. (search for similar items in EconPapers)
Date: 2025
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