Abstract
The rapid adoption of artificial intelligence (AI) leads to new opportunities and risks for the banking ecosystem. To support bank management and regulatory efforts with a deeper understanding of responsible conduct, this study addresses a salient research gap by developing a new theoretical model to describe the tenets of responsible deployment of AI in banking. Applied through a grounded theory approach, existing adoption and integration practices are explored by drawing on literature studies and semi-structured interviews with 17 participants with professional experience with AI in an international banking context. Themes are synthesised through the Gioia technique. The theoretical model is underpinned by an objective-execution-outcome structure. The contribution of the study is a new theoretical model to explain and encourage responsible deployment of AI, and explicates which elements banks should consider when designing internal policies, and could further inform decision-making by management, and regulatory efforts.