Reshaping Commercial Banks' Profitability in the Era of Intelligent Finance: AI-Driven Mechanism Test and Policy Recommendations
DOI:
https://doi.org/10.53469/ijomsr.2026.09(05).02Keywords:
Artificial intelligence, Bank profitability, Operating costs, Risk control, Innovation capabilityAbstract
In the context of the continuous advancement of the digital economy strategy and the deepening of the supply-side structural reform in the financial sector, artificial intelligence technology is accelerating the reshaping of the value creation methods and profit models of the banking industry. Based on panel data of A-share listed banks in China from 2007 to 2023, this paper systematically examines the impact of artificial intelligence on the profitability of banks and its mechanism of action. The study found that the application of artificial intelligence significantly enhanced the profitability of banks, mainly through two paths: reducing operating costs and strengthening risk control. At the same time, the innovation ability of banks can enhance the profit-promoting effect of artificial intelligence, that is, the stronger the innovation ability, the more obvious the marginal benefit of artificial intelligence. Further heterogeneity analysis indicates that AI has a more significant profit-boosting effect on public banks and large banks. The economic significance analysis shows that AI not only helps improve the cost-income structure and asset quality of banks, but also enhances their sustainable profitability in the context of interest rate liberalization and fintech competition. This paper provides empirical evidence and decision-making references for banks to advance digital and intelligent transformation and for regulatory authorities to improve the digital finance policy system.
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