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This study aimed to explore the impact of Artificial Intelligence (AI) characteristics, namely Perceived Animacy (PAN), perceived intelligence (PIN), and perceived anthropomorphism (PAI), on user satisfaction (ESA) and continuous intentions (CIN) by integrating Expectation Confirmation Theory (ECT), with a particular focus on Generation Y and Z.

Using a quantitative method, the study collected 495 data from Gen Y (204) and Z (291) respondents who were users of digital banking apps through structured questionnaires that were analysed using PLS-SEM. The latter helped investigate the driving forces of AI characteristics and user behavioural intentions as well as reveal generation-specific features of digital banking engagement.

The study revealed that PAN and PIN have significant positive effects on the anthropomorphic perceptions of digital banking apps, which in turn increases perceived usefulness, satisfaction, and continuous intentions. In particular, the influence of these AI attributes varies across generations; Gen Y’s loyalty is mostly based on the benefits derived from AI features, whereas Gen Z places a greater value on the anthropomorphic factor of AI. This marked a generational shift in the demand for digital banking services.

The specificity of Indian Gen Y and Z users defines the scope of this study, suggesting that demographic and geographical boundaries can be broadened in future AI-related banking research.

The results have important implications for bank executive officers and policymakers in developing AI-supported digital banking interfaces that appeal to the unique tastes of millennial customers, thus emphasising the importance of personalising AI functionalities to enhance user participation and loyalty.

This study enriches the digital banking literature by combining AI attributes with ECT, offering a granular understanding of AI’s role in modulating young consumers' satisfaction and continuance intentions. It underscores the strategic imperative of AI in cultivating compelling and loyalty-inducing digital banking environments tailored to the evolving expectations of Generations Y and Z.