Abstract:

This study investigates the predictive roles of customer-centric and risk management artificial intelligence (AI) applications in optimizing banking operations in Nigeria. The objective was to determine how AI-driven solutions enhance operational efficiency, service quality, and regulatory compliance within the Nigerian banking sector. A predictive research design was adopted, using multiple regression analysis to examine the influence of AI applications, including automation, data-driven decision-making, customer-focused innovations, and risk/compliance management, on banking efficiency and process optimization. Data were collected from 444 purposively sampled banking professionals across top-tier commercial banks in Nigeria, using a validated Likert-scale questionnaire. Findings reveal that customer-centric AI significantly improves service delivery, query resolution, and operational responsiveness (β = 0.200, p = 0.002), while AI in risk and compliance management strengthens fraud detection, transparency, and regulatory adherence (β = 0.169, p = 0.013). Both applications demonstrate statistically significant predictive roles in enhancing operational performance, customer satisfaction, and process optimization. Based on these results, it is recommended that Nigerian banks invest in AI infrastructure, provide staff training, implement ethical AI practices, and encourage regulatory support to maximize AI’s predictive potential for sustainable operational excellence and improved customer trust.