The Impact of Artificial Intelligence on Commercial Banks in Oman

Dr. Mohammed Jahangir Ali
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Dr. Mohammed Jahangir Ali: Associate Professor, Accounting and Finance – Department of Business Administration and Accounting, Al Buraimi University College, Al Buraimi – Sultanate of Oman

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 4, 309-322

Abstract: The Artificial Intelligence (AI) is transforming the global banking sector, boosting efficiency, enhancing risk management, and improving customer experience. This study explores AI’s impact on commercial banks in Oman, focusing on its role in digital transformation, automation, fraud detection, and personalized services. Through a combination of qualitative and quantitative analysis, the research examines how AI-driven technologies like chatbots, machine learning, and predictive analytics optimize banking operations and customer satisfaction. The study also addresses challenges such as cyber security risks, regulatory compliance, and workforce adaptation. Findings reveal that AI contributes to cost reduction, increased efficiency, and a competitive edge, while emphasizing the importance of a balanced approach to its integration. The research offers recommendations for maximizing AI adoption in Omani banks to foster sustainable growth and innovation. Purpose: The study investigates how AI is reshaping the banking sector in Oman, analyzing its effects on operational efficiency, customer service, and decision-making, while highlighting both the opportunities and challenges Omani banks face in adopting AI. Research Methodology: The study employs a structured methodology to assess AI’s impact on Omani commercial banks, including in-depth interviews with key bank employees and managers and a survey of 200 respondents. It outlines the research design, data collection methods, and analytical techniques used to evaluate AI’s influence on banking operations and decision-making. Result: The Artificial Intelligence has notably enhanced banking efficiency, accuracy, customer service, and risk management in Oman. However, challenges such as the need for skilled workers, high implementation costs, and data privacy concerns persist. AI is recognized as a key driver of innovation and competitiveness within the Omani banking sector.

Date: 2025
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