Chatbots have become popular in the financial industry - in 2022, almost 100 million people in the US or 37% of the population engaged with a bank’s chatbot.
They will be used more with the recent rise of Large Language Models or generative AI.
However, CFPB recently pointed out the risk for FIs to overly rely on chatbots.
📌 Chatbots still have limited capabilities to handle disputes. They could give false or insufficient information. Thus fail to provide meaningful customer assistance.
🚩 Risk: noncompliance of consumer protection obligations such as fair treatment and providing straight answers.
📌 Chatbots could hinder access to timely human intervention.
🚩 Risk: diminished customer service and trust - people still want to talk to people!
📌 Chatbots are subject to technical limitations such as system breakdown, phishing scams, and privacy data breach.
🚩 Risk: harming consumers by not serving their financial rights and solving their issues .
The overall message?
Do not replace important human interactions with chatbots.
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