Majority of Americans Trust AI for Digital Payment Account Monitoring, But Is It Truly Secure?

According to Yahoo News, the financial industry continues to develop ways to make spending money easier, with artificial intelligence (AI) driving the next generation of digital payment systems. However, while many consumers are adopting AI as a financial resource, most still do not trust the technology to spend money. A recent Empower survey of 999 American adults revealed that the majority trust AI to assist with financial planning, with nearly two-thirds (65%) stating they would use the technology to provide account balances or performance updates. Other areas where more than half of respondents would use AI financially include suggesting ways to grow savings (60%), helping to manage or stick to a budget (58%), and creating a budget (57%). However, only 41% of Americans are open to the idea of AI paying their bills, according to the survey. Fewer than one-in-five (17%) trust AI to make investments, while less than 10% have asked AI to help them with a financial matter. AI can be beneficial in payment processing for merchants and vendors, as it can help streamline operations, minimize errors, and increase efficiency. It is also effective in reducing false declines, which occur when a legitimate online purchase using a valid credit card is declined when it should have been approved. However, there are risks associated with AI, particularly in terms of fraud. AI can be used to create spam emails and fake websites on a larger scale, increasing the risk of fraud for those who use AI to make payments. Additionally, AI makes it easier for fraudsters to impersonate speech patterns and language, increasing the likelihood that consumers will send money to the wrong person.