Leveraging artificial intelligence for customer personalization: Insights from banks located in Mwanza City, Tanzania

Thomas John Odilah

doi:10.51867/AQSSR.3.1.47

Auteurs-es

Thomas John Odilah Tanzania Institute of Accountancy (TIA), Tanzania Auteur-e

DOI :

https://doi.org/10.51867/AQSSR.3.1.47

Mots-clés :

AI Adoption, Banks, Customer Personalization, Mwanza, Tanzania

Résumé

The purpose of the study is to explore the relationship between artificial intelligence (AI) adoption by banks and customer personalization, specifically for banks located in Mwanza City, Tanzania. The Technological Acceptance Model (TAM) served as the theoretical foundation. The customer personalization constructs include customer loyalty, customer retention, customer advocacy, and customer engagement. A quantitative method was used through a cross-sectional survey design targeting 100 banking officials, including marketing managers, customer service officers, IT officers/systems analysts, digital banking officers, and branch managers. Structured questionnaires were used to collect the primary data, and the hypotheses were tested using Structural Equation Modelling (SEM). The results reveal that AI adoption has a positive and statistically significant effect on customer engagement, retention, loyalty, and advocacy, with p-values less than 5% for all the customer personalization constructs used in this study, supporting TAM’s applicability in understanding AI adoption among the selected banks in Mwanza, Tanzania. The study recommends that banks should enhance their AI-driven personalization by integrating thorough staff upskilling with comprehensive automation and advanced predictive analytics, all governed by robust data management practices. Furthermore, regulators need to establish innovation-friendly frameworks that are proportionate to the associated risks of AI usage, enabling the secure deployment of AI to improve customer engagement, retention, loyalty, and advocacy. This approach will help banks to maintain competitiveness in the rapidly evolving digital landscape.

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