IMPACT OF ARTIFICIAL INTELLIGENCE ON CUSTOMER TRUST IN DIGITAL PAYMENT APPLICATIONS: A STUDY WITH SPECIAL REFERENCE TO ERODE DISTRICT OF TAMIL NADU

Abstract

The rapid advancement of digital technology has transformed the financial sector, leading to the widespread adoption of digital payment applications. Artificial Intelligence (AI) has become a significant component of these applications, enhancing security, efficiency, and user experience. AI-driven features such as fraud detection, biometric authentication, predictive analytics, and personalized recommendations have contributed to increased customer confidence in digital transactions. This study examines the impact of Artificial Intelligence on customer trust in digital payment applications in Erode District. The study utilizes both primary and secondary data. Primary data were collected from 120 respondents through a structured questionnaire, while secondary data were gathered from journals, reports, and academic publications. Percentage analysis and weighted average ranking were used for data analysis. The findings reveal that AI-powered security features significantly influence customer trust and encourage the continued use of digital payment applications.

Artificial Intelligence (AI) has emerged as a transformative force in the financial technology sector, significantly influencing the development and adoption of digital payment applications. Customer trust plays a crucial role in determining the acceptance and continued usage of digital payment applications. In recent years, increasing concerns regarding cyber fraud, data breaches, privacy issues, and unauthorized transactions have highlighted the importance of advanced security mechanisms in digital payment systems.