Digital Leadership and Employee Performance in the Age of AI: A Comparative Study of Indian Banking Employees Using Machine Learning Approaches

DOI

10.2991/978-94-6239-674-6_38How to use a DOI?

Keywords

Artificial Intelligence; Digital Leadership; Banking Sector; Regression Analysis; Workforce Productivity; Employee Performance; Feature Importance; Digital Transformation; Random Forest; Data-Driven Decision Making

Abstract

Digital leadership has become a decisive factor towards the efficacy of the workforce in technology-oriented organizations especially in the fast-evolving banking environment in India. As tools of artificial intelligence (AI) and machine learning (ML) are being integrated in human resource analytics, leadership evaluation is changing an evaluation based on perception to a performance forecasting-based evaluation. This essay explores the impact of digital leadership practices on the productivity, motivation, and engagement of employees in the leading Indian banks like ICICI, HDFC, and SBI. Supervised ML algorithms-linear regression, random forest, and support vectors were used to analyze a dataset that comprised 200 records of employees and each employee had leadership ratings, digital adaptability scores, and performance indices. The findings of the correlation indicate that the data-informed decision-making, the ability to collaborate remotely, and adaptive communication are the digital leadership qualities that explain almost 68 percent of the variation in measures of employee performance. Natural language processing (NLP) sentiment analysis of 5,000 textual employee feedback entries has shown that the sentiment index is positive at 0.72, which emphasizes the high level of emotional alignment of employees operating on the digital and artificial intelligence (AI)-based leadership. Based on the data comparison, Banks that utilize AI HR tools have reported a productivity increase of 15 – 18 times and a decrease in turnover rate by 12 times, compared to banks that use traditional methods of leadership. The positive AI’s potential value as a core component of managerial and leadership style aimed at strengthening employee commitment and organizational cohesion is further substantiated.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Satyam Kumar Sharma
AU  - Ashish Sharma
AU  - Abhishek Kumar Gupta
AU  - Jai Narayan Shukla
AU  - Ankit Upadhyay
PY  - 2026
DA  - 2026/05/28
TI  - Digital Leadership and Employee Performance in the Age of AI: A Comparative Study of Indian Banking Employees Using Machine Learning Approaches
BT  - Proceedings of the International Conference on Sustainable Computing and Artificial Intelligence (ICSCAI 2025)
PB  - Atlantis Press
SP  - 459
EP  - 471
SN  - 2352-5401
UR  - https://doi.org/10.2991/978-94-6239-674-6_38
DO  - 10.2991/978-94-6239-674-6_38
ID  - Sharma2026
ER  -