Artificial Intelligence (AI) And Financial Performance of the Financial Service Industry in Kenya

Freda Moraa Omambia
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Freda Moraa Omambia: Department of Accounting and Finance, Technical University of Mombasa, Kenya

African Journal of Commercial Studies, 2025, vol. 6, issue 4

Abstract: This study evaluates the effect of Artificial Intelligence (AI) on the financial performance of Kenya’s financial services industry, particularly the banking sector. Using a desk review methodology and drawing on the Technology Acceptance Model (TAM), Resource-Based View (RBV), and Innovation Diffusion Theory (IDT), the study synthesizes empirical studies and industry reports published between 2020 and 2025. Findings show that AI adoption enhances financial performance through improved operational efficiency, customer service, financial inclusion, and decision-making. However, challenges remain in data quality, regulatory compliance, algorithm transparency, and the limited assessment of non-financial impacts.

Keywords: Artificial Intelligence; Financial Performance; Banking Sector; Financial Inclusion; Predictive Analytics; Robo-Advisors; Digital Transformation; Kenya (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2025-81

DOI: 10.59413/ajocs/v6.i4.8

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