Volume I, Issue 1 (2025)
Disruptive Transformations in Banking Industry and Associated Legal Practices Through AI & ML
Author – Upendra Bhardwaj, Advocate, High Court of Delhi.
Month, Year of Publication – March, 2025
Abstract
In this fast moving world, the excessive burden upon the industries is encouraging a reduction in the onus with the assistance of new technologies. Modern technology is also positively intruding various operational processes to make it efficient and prompt. Technologies like Artificial Intelligence (AI) and Machine learning (ML) are performing commendable tasks in making the lives of people and institutions smooth and coherent. Both these innovative technologies are creating disruptive effects in the various processes of society and diverting them from lethargic to efficacious construction. Operational processes in the banking industry and related legal practices are very complex in nature and by solving these intricacies in an intelligent and functional way, Artificial intelligence and Machine learning are proving their worth. The practical confluence of technology and industry shall be appreciated in this research paper. The paper analyses the disruptive way of transformation in the banking industry and legal practices in the industry brought on by Artificial Intelligence and Machine Learning along with the scrutiny as to how future operational and legal functions are being processed and adopted through this lens of AI and Machine Learning. The paper also focuses on how such technologies may prove to be good for positive societal changes without hampering its basic foundation.
keywords
artificial intelligence, machine Learning, banking industry, legal practices, disruptive transformation
I. Introduction
Finance is a very significant aspect of everyday life and after the nationalization of banks in India, the finance industry became the country’s backbone. At earlier stages in India, the structural and operational management of the banking system was not good and it is still not as efficient as it must be for smooth functioning of the country’s economy. On top of it, the legal aspects of the banking system are also very complicated and time taking which could not be handled manually. India has become a country with the largest population in the world and catering the banking needs of such a huge population is impossible through mere manual labour. In light of this, use of Artificial intelligence and Machine learning comes handy and thus creates a technological disruption in society.
The use of Artificial intelligence and Machine learning for the banking industry and related legal practices can make the imagery clearer on the line of risks and dangers involved in the industry. Such technological advancements have the capacity to ensure strong and reliable returns to the individual too.2 AI and ML help ease the plethora of processes of the banking system and these technologies are an excellent way to synchronize the old system with new transformations. Though maintaining the sanctity of old systems with involvement of new technology is a complex task, Artificial intelligence and Machine learning can execute it in a planned way.3 Thus, for making the banking process modern and digitized, use of AI and Machine Learning is inevitable.
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Cite as
Upendra Bhardwaj. “Disruptive Transformations in Banking Industry and Associated Legal Practices Through AI & ML” International Journal of Legal Policy, Vol.1(1) 70-86 (2025)
