The rapid adoption of digital banking has transformed the delivery and consumption of banking services in India. This study examines the influence of digital banking and artificial intelligence (AI)-enabled banking services on customer satisfaction in Nagpur City. A descriptive; mixed-method approach was adopted using responses from 300 banking customers and 10 semi-structured interviews. The study considered digital banking experience through perceived usefulness, ease of use, system availability, security, responsiveness, and the performance of AI-enabled chatbots. Findings indicate very high adoption of UPI and strong satisfaction with mobile banking interfaces, 24/7 availability, and security alerts. However, satisfaction with AI chatbots was considerably lower, particularly when customers faced transaction disputes or complex service requests. The findings suggest a clear satisfaction gap: customers value digital speed and convenience but continue to expect human intervention, empathy, and effective escalation when technology fails. The study concludes that banks in Nagpur should pursue a phygital service model that combines efficient digital channels with accessible human support, stronger vernacular and contextual AI capabilities, transparent communication, and reliable service recovery mechanisms.

Khushi R Rakhunde, Piyush Borker, Satish Shende, Sejal Sable, Kunal Vinesh Titare, Dr Kalyani Bante, "Influence of Digital Banking and Artificial Intelligence on Customer Satisfaction in Nagpur City" International Journal of Advance Research in Science, Management, Engineering and Technology, V1(4): Page(10-13) September - October 2026. ISSN: 3139-1141. www.ijarsmet.com. Published by Scientific and Academic Research Publishing.