THE IMPACT OF ARTIFICIAL INTELLIGENCE ON FINANCIAL PERFORMANCE WITH MODERATION OF SUSTAINABILITY IN BANKING COMPANIES IN INDONESIA

Abstract

The study investigates the impact of the adoption of artificial intelligence (AI) by the conventional banking sector in Indonesia on financial performance through ROA and ROE, with sustainability as a variable that strengthens or weakens the relationship between the two. Data was obtained from the ten largest public banks in Indonesia listed on the Indonesian Stock Exchange during the period 2022–2023. The use of AI technology and sustainability programs are consistently reported in the majority of banks' annual reports. Data analysis using SPSS tests with linear regression models. Studies show that the adoption of AI does not have a significant impact on ROA with sustainability as a moderation variable. However, adopting AI with a moderate level of sustainability has a positive and significant effect on ROE.