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How AI is becoming a customer-facing layer in BFSI from back-end tool

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How AI is becoming a customer-facing layer in BFSI from back-end tool

How AI is becoming a customer-facing layer in BFSI from back-end tool

The shift is being driven by rising customer expectations, with financial-services users increasingly benchmarking banks against the speed and convenience offered by e-commerce and other digital platforms, BFSI honchos said at the ETBFSI CXO Conclave 2026.

Perhaps no application of AI in Indian BFSI carries greater strategic significance than the transformation of credit underwriting. (AI image)

AI is moving from back-end automation to customer-facing functions such as personalised interactions, AI-led calling, copilots and autonomous workflows. Banks and financial firms are using real-time data and AI to understand customer behaviour and deliver personalised recommendations, alerts and faster lending decisions. Routine transactions can be automated, but complex lending, wealth management and insurance decisions will continue to require human oversight. Data quality, privacy, explainability and governance remain key challenges, while BFSI firms are increasingly measuring AI returns through higher conversions, lower costs and improved productivity.

Artificial intelligence is moving beyond isolated automation use cases to become an operating and customer-engagement layer for banks, insurers, NBFCs and other financial-services firms, executives said at the ETBFSI CXO Conclave 2026. The shift is being driven by rising customer expectations, with financial-services users increasingly benchmarking banks against the speed and convenience offered by e-commerce and other digital platforms. However, executives stressed that BFSI firms must balance speed with trust, security, regulatory compliance and human oversight. Advt

“AI is no more a technology layer. It is becoming an operating layer in the organisation,” one executive said, adding that firms are rethinking processes with AI as a core capability rather than simply adding AI to existing workflows.


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