The Consumer Financial Protection Bureau (CFPB) has just published a report on financial institutions’ use of chatbots. According to the research, over 98 million users—or around 37% of the US population—interacted with a bank’s chatbot in 2022. By 2026, this figure is anticipated to increase to 110.9 million users.
Financial organizations have tested advanced technologies like generative chatbots, promoting them as “artificial intelligence.” These chatbots autonomously produce responses using machine learning, neural networks, and natural language processing. Reducing customer service expenses is the main objective of using chatbots.
The CFPB warns that while chatbots can answer simple questions, they lose effectiveness when confronted with more complicated ones. The research highlighted the potential of financial institutions breaking federal consumer protection regulations while using chatbot technology. According to the CFPB’s study, failing to comply with these regulations may lead to erroneous information delivered by chatbots. It may also lead to a disregard for consumer rights, and insufficient privacy and data protection.
The research also highlights potential problems like deteriorating customer service and trust. Customers needing immediate assistance may encounter unhelpful responses and need to communicate with live customer support agents. Meanwhile, these conversations with chatbots could decrease people’s faith in financial institutions.
The CFPB also draws attention to the potential harm that erroneous information provided by chatbots may bring to consumers. Customers may choose the incorrect financial services or products as a result, paying fees or facing penalties.
The Consumer Financial Protection Bureau (CFPB) has noticed an upsurge in consumer concerns about chatbot usage. The concerns include; issues with dispute resolution, getting accurate information, getting meaningful customer support, interacting with real people, and protecting personal information.
They advised that financial institutions and other market participants employing chatbots and improved generative AI tools must adopt procedures to ensure compliance with consumer protection legislation. Companies utilizing AI technologies should consult with lawyers with experience in these fields as their use presents legal issues.
In your opinion, are these issues real or exaggerated? What has your experience been like?
