IJARSAI International Journal of Advanced Research Scientific Analysis & Inferences
Volume 2, Issue 1, January-June, 2026
Impact of AI-Driven Digital Marketing on Customer Trust: A Comparative Study of Public and Private Sector Banks
IJARSAI Int. J. Adv. Res. Sci. Anal. Infer.
Impact of AI-Driven Digital Marketing on Customer Trust: A Comparative Study of Public and Private Sector Banks
Akhil Sebastian
Research Scholar
Post Graduate and Research Department of Commerce
Bishop Abraham Memorial College, Thuruthicad, Pathanamthitta
Affiliated to the Mahatma Gandhi University, Kerala, India
Email: akhilcommerceaquinas082018@gmail.com
The introduction of artificial intelligence (AI) in digital marketing is transforming India’s banking industry through customer personalization, service automation, and data-based decision making. However, the extent to which AI-driven digital marketing promotes customer trust remains understudied, particularly across public and private sector banks in India. This paper attempts to fill this research gap by conducting an analysis based on responses from 600 customers in the banking sector of Kerala. These respondents belong to two different sets of banks – one set comprises 300 public sector bank customers, while the other set consists of 300 private sector bank customers. Based on descriptive statistics, more acceptance of AI was observed among customers of private banks, as reflected in their mean scores for AI use (M = 3.8 vs. 3.2) and digital customer experience (M = 4.0 vs. 3.6). In comparison, there is a slight advantage for public banks regarding perceived safety (mean = 3.8 against 3.7). Results from correlations show a positive relationship between customer trust and customer experience in the digital environment (r = 0.70), security (r = 0.65), and the usefulness of AI technology (r = 0.60). The regression model explains 62% of the total variance in customer trust (R² = 0.62), with the digital customer experience being the strongest predictor (β = 0.29). An independent samples t-test shows significantly higher levels of customer trust in private banks (t = –4.44, p < 0.001). Findings show that digital service quality, AI transparency, usefulness, and security together contribute to customer trust in AI services in the banking industry.
Keywords: AI-driven digital marketing, Customer trust, Public sector banks, Private sector banks, Digital banking adoption, Personalization and privacy, Kerala banking sector.Sebastian, Akhil. “Impact of AI-Driven Digital Marketing on Customer Trust: A Comparative Study of Public and Private Sector Banks”. IJARSAI International Journal of Advanced Research Scientific Analysis & Inferences 02, no. 01 (May 30, 2026): 99–114. https://doi.org/10.5281/zenodo.20590653.