Artificial intelligence as a key strategic catalyst for enhancing banking service quality: Investigating the mediating role of digital innovation

The paper examines how artificial intelligence (AI) improves banking service quality in Jordan, with digital innovation acting as a mediator. Using survey data from 435 respondents, the study finds that AI, through automation, data analysis, cybersecurity, customer experience, and ethics, positively impacts service quality both directly and indirectly (Skouloudis & Venkatraman, 2025). Digital innovation significantly strengthens this relationship, highlighting its role in enhancing responsiveness, security, and personalization in banking services. The paper addresses a relevant and timely topic in the field of corporate and business strategy. The integration of AI, digital innovation, and banking service quality represents an important contribution for both academic research and practical strategy in the financial sector (Castelnovo, 2024). This study contributes to the literature by empirically demonstrating the strategic importance of aligning AI technologies with comprehensive digital innovation initiatives in the banking sector. From a practical perspective, the findings provide valuable insights for bank managers and policymakers seeking to improve service quality through AI-driven digital transformation within emerging market contexts.