December 06, 2021

When it Comes to Trust in Tech, People Prefer AI

Original article published online at CU Today.
DECEMBER 06, 2021

By Kavita Singh

Kavita Singh

According to a recent Oracle study of 9,000 people in 14 countries, a majority of people trust technology and machines most with their money. Sixty-seven percent trust robots more than humans and 59% trust robots even more than themselves when it comes to managing money.

This is an interesting notion and really a paradigm shift, as in the past people have been critical of automated technology solutions, including artificial intelligence. Now, the tide is turning and consumers and business leaders alike are recognizing the benefits that AI and machine learning can bring to the table.

What Could Have Caused This shift?

The first and probably most powerful force that began this shift was simply familiarity. AI and machine learning are no longer new concepts. As consumers, we have grown used to this technology and we encounter it nearly everywhere in our daily lives.

For example, retailers use it to predict what you’ll buy, provide recommendations and, sometimes, it even feels like they already know what you want. Experience matters and people are comparing all of their experiences against each other. So, it can be said that one good experience with AI sets the stage for another experience in another area. Since AI has  comfortably settled into our daily lives, people are becoming less and less skeptical and  beginning to value the benefits it provides.

People are also more trusting of AI as they see its proven results. Because AI is  commonplace now, we are more aware that it works and can provide benefits for both consumers and businesses. We’ve seen use cases in areas like fraud detection, lending and personal financial wellness and we know it works, so we trust those good results.

With financial advice, it works because AI can handle very large and rapidly growing volumes of data housed in disparate systems in order to “know” an individual user and predict their needs. In other words, since it has access to all your data, AI gets a more complete view of each individual, so the answers and financial recommendations can be more personalized. In the case of fraud detection, AI can analyze many different fraud signals in real-time and stop bad actors from committing fraud while keeping the member experience frictionless.

As fraud evolves, AI can also find those previously unknown fraud patterns. We know members look to their credit union to move money safely and AI empowers credit unions to offer those great member experiences while managing fraud risk effectively.

It is not surprising then that AI has gained our trust. Because we’ve seen it, used it and know it works well, most people have come to trust it – some people even more than they trust themselves. Many people also believe that technology will not carry a bias like people can, so they prefer it and trust it more than humans.

What Should CUs Do?

Credit unions must understand these changing trends. Using solutions like AI and machine learning can bring exceptional benefits to both the CU and the member:

The member gains greater flexibility, with the option to choose their preferred channel: online, mobile, or even voice via chatbots. The member also reaps the benefit of better recommendations. AI has the data from across all credit union departments, which makes a more big-picture view of their situation rather than individuals handling siloed information.

For the credit unions, AI means the ability to provide enhanced member service. AI can do what people cannot. It can look at a load of data and understand a lot of complex concepts, where credit union staff cannot process information as precisely in order to make personalized recommendations for each member.

The credit unions can also expect to see cost savings with AI. This technology helps credit unions achieve a high level of personalized service without incurring additional costs. Technology-wise, AI is a very achievable solution to implement and credit unions can use it where they need it. Finally, AI and machine learning solutions give the credit unions the ability to compete with the big banks by providing highly personalized service and advanced digital capabilities.

Maybe On to Something

Looking at all the details on AI, Oracle’s respondents might be onto something. AI has proven to be beneficial and trustworthy, and its benefits are well worth taking the plunge.

Kavita Singh is Vice President of AI Product Management at Payrailz.