Artificial Intelligence Adoption in Developing Countries: Exploring the Use Cases and Challenges for Using AI In Banking Services in Pakistan

Abstract

This research explored the potential use cases and challenges for adopting artificial intelligence (AI) in banking services in Pakistan. A mixed methods approach was used, comprising a systematic literature review, expert interviews, and a survey of bank employees. The literature review identified key AI application areas in banking including personalization, process automation, risk management, customer service chatbots, and anti-fraud/AML systems. Expert interviews highlighted the need to improve financial inclusion, efficiency, security and personalized services. However, challenges exist around data, infrastructure, skills, and cultural perceptions of AI. The survey (n = 152) found moderate confidence in banks’ readiness to adopt AI, and concerns about potential job losses. Key recommendations include upskilling programs, public awareness drives, partnerships, and regulatory support from government. While AI adoption is still nascent, this study provides practical insights into leveraging AI safely and responsibly to advance Pakistan's banking sector. Further research can continue tracking adoption levels over time. 

Keywords: artificial intelligence, machine learning, banking, fintech, developing countries, Pakistan