AI-POWERED CHATBOTS AND CUSTOMER EXPERIENCE IN NIGERIA’S BANKING SECTOR: OPPORTUNITIES AND CHALLENGES

Abstract

Artificial Intelligence (AI)-powered chatbots are revolutionizing customer interactions in the banking sector by enhancing service ef iciency, reducing operational costs, and providing real-time financial assistance. Global financial institutions have successfully integrated AI- driven chatbots to handle inquiries, transactions, and fraud detection. Nigeria’s banking sector is also adopting AI-powered chatbots, with leading banks like UBA, First Bank, and GTBank leveraging digital assistants such as Leo, Ada, and Habari AI Assistant to improve customer engagement. These chatbots operate across multiple platforms, including mobile apps and social media, of ering 24/7 banking services. However, several challenges hinder the full-scale implementation of AI chatbots in Nigeria, including poor internet infrastructure, limited support for local dialects, security concerns, and regulatory uncertainties. This paper explores the opportunities and challenges of AI chatbot adoption in Nigerian banking, assessing their impact on customer experience. It provides strategic recommendations to optimize chatbot ef iciency, enhance user trust, and ensure regulatory compliance, fostering a more inclusive and digitally advanced financial secto