Service Quality and Customer Satisfaction in AI-Driven versus Human Banking Support

Abstract

Background: The integration of artificial intelligence (AI) into retail banking has transformed frontline service delivery, prompting financial institutions to substitute human personnel with automated virtual assistants. While conversational agents offer scalable operational speed, their comparative performance against human representatives across core service quality dimensions remains contested.

Objective: This study evaluated customer-perceived service quality dimensions (responsiveness, reliability, assurance, and empathy), customer satisfaction, and service continuance intention across AI-driven and human banking support channels, while examining the moderating influence of query complexity.

Methodology: A cross-sectional comparative survey was conducted among 384 verified commercial retail bank customers who had interacted with both automated virtual assistants and human support personnel within the preceding twelve months. Data were collected using structured instruments developed for the study. Hypotheses were tested using paired-samples t-tests, two-way repeated-measures Analysis of Variance (ANOVA), and Partial Least Squares Structural Equation Modelling (PLS-SEM).

Result: AI virtual assistants achieved significantly higher perceived responsiveness than human personnel, while both channels demonstrated equivalent transactional reliability. Conversely, human representatives achieved significantly higher ratings in empathy and assurance. The structural model demonstrated that perceived empathy significantly predicted customer satisfaction in human encounters but failed to predict satisfaction in AI interactions. Furthermore, query complexity significantly moderated satisfaction: AI support generated higher satisfaction for routine transactions, whereas human support produced markedly superior satisfaction for complex, disputed, or emotionally sensitive issues. Service quality dimensions collectively mediated the relationship between support modality and customer satisfaction.

Conclusion: Conversational AI cannot completely replace human professionals in retail banking. Financial institutions must adopt hybrid service delivery models that leverage AI for rapid routine triage while maintaining seamless escalation pathways to human specialists for complex grievances.