Bank Customers Express Distrust in AI

Even though new technology continues to be integrated in the financial services industry, most bank customers in the US are skeptical of the uses of AI, according to JD Power.

The Banking and Payments Intelligence Report found that only 28% of bank consumers believe that AI, either generative or machine learning, will make their lives better.

While 17% think it will make their lives worse and 24% say they don’t know the impact it will have.

This is particularly notable as many industry analysts expect 2024 to be the year when generative artificial intelligence will make a meaningful difference in consumers’ lives, according to the report.

The report also revealed customers of the nation’s largest banks and online-only banks are more familiar with AI than customers at credit unions or local banks.

This familiarity has an effect on consumers’ perceived perception of the impact of AI in their lives as nearly half (48%) of customers that were familiar with AI thought it would make their lives better.

In comparison, only 6% of those who are not familiar with AI shared the same opinion.

Consumers are even more distrusting of the specific applications of AI in financial services, as only 26% of consumers would be willing to use facial recognition to withdraw money.

Meanwhile, only 21% would use tools that automatically change or update investment portfolios and 18% would use an AI bot to help find the best mortgage, auto loan or personal loan rates.

However, customers are more willing to set aside their skepticism of AI when the tools make an immediate impact on managing their financial lives, according to the report.

For example, the percentage of customers that answered they would never use AI tools was the lowest (10%) when it would help them to avoid fraud.