The financial sector is always coming up with new ways to make spending money easier, and the next wave of digital payment systems is being driven by artificial intelligence (AI). Even if a lot of customers are using AI as a financial tool, the majority still don’t trust the technology with their money.
According to a recent Empower study of 999 American adults, most people believe AI can help with financial planning; nearly two-thirds (65%) said they would utilise the technology to get performance updates or account balances. More than half of respondents said they would use AI in other financial contexts, such as making recommendations for how to increase savings (60%) and assist with managing or adhering to a budget (58%), as well as budget creation (57%). However, the survey found that only 41% of Americans were comfortable with AI handling their bill-paying. Less than 10% of people have sought AI for financial assistance, and just 17% of people trust AI to make investments.
AI can help merchants and vendors handle payments more efficiently by streamlining processes, reducing errors, and boosting productivity. It also works well to lower the number of false declines, which happen when an authorised online transaction with a working credit card is turned down when it ought to have been accepted. But there are risks involved with AI, especially with regard to fraud.
AI increases the danger of fraud for people who use it to make payments because it can be used to send spam emails and phoney websites on a wider scale. Furthermore, AI increases the probability that customers may send money to the wrong individual by making it simpler for scammers to mimic speech patterns and language.