Abstract
As digital technologies and AI systems increasingly pervade banking services, understanding customers' digital capabilities and awareness of AI ethics principles is paramount. This paper delves into these critical aspects among banking clientele. Employing a survey research approach with a cross-sectional design, an online survey via Google Forms was distributed to 500 banking customers, of whom 466 responded. The survey evaluated respondents' digital competencies and AI ethics awareness through multiple-choice questions and Likert scale items. Utilizing IBM SPSS version 28 and Microsoft 365 analysis software, descriptive statistics and statistical analysis were conducted to discern trends and patterns. The key finding emphasizes the urgency for financial institutions to invest in digital technologies enhancing customer experiences and fostering ethical AI adoption. A significant policy implication underscores the need for policymakers and regulatory bodies to collaborate with the banking sector, developing clear guidelines for responsible AI practices, prioritizing customer privacy, data protection, and fairness in AI algorithms. This study also introduces the CORE AI framework, concentrating on responsible AI adoption, customer-centricity, and strategic optimization, promising positive outcomes for stakeholders. The original contribution of this research lies in its comprehensive exploration of the nexus between digital competencies and AI ethics awareness.