Three-quarters of financial services leaders believe their own AI strategies could harm vulnerable customers, as new research reveals growing concerns over access to human support and widening digital exclusion.
Financial services firms risk making it harder for vulnerable customers to access support as AI adoption accelerates across the sector, according to new research from ArvatoConnect.
The study, which surveyed 1,000 senior decision-makers across U.K. banks, insurers, fintechs, building societies and credit providers, found widespread concern among leaders that AI-driven customer service strategies are advancing faster than the safeguards needed to protect vulnerable customers.
Around 77 percent of financial services leaders said their organisation's AI strategy could have a negative impact on vulnerable customers, with 28 percent describing the risk as high.
The findings come as AI deployment continues to gather pace. Around 88 percent of organizations have increased their use of AI in customer-facing operations over the past year, including 41 percent that reported a significant increase.
At the same time, financially vulnerable consumers continue to face significant barriers when seeking help from providers.
According to the research, 74 percent of vulnerable customers have felt like giving up while trying to get support from a bank, insurer or financial provider, and 26 percent have abandoned attempts to seek help altogether.
Human Support Remains Difficult To Access
The research points to ongoing challenges in balancing automation with access to human assistance.
Around 35 percent of vulnerable customers said they could only reach a human adviser after considerable effort navigating automated systems and waiting queues. A further 15 percent reported being unable to reach a human at all. Just 23 percent said they could access a human adviser easily.
Automated systems also appear to be falling short in resolving customer issues. Around 52 percent of customers said that AI or automated systems rarely or never solved their problem without escalation to a human agent, while only 2 percent reported consistently receiving the answers they needed through automated channels.
The experience is taking an emotional toll, with 58 percent of vulnerable customers reporting feeling frustrated during support interactions, while one-third said that they felt isolated and unable to access the help they needed.
Around 32 percent described becoming trapped in an "AI doom loop," repeatedly being redirected through automated systems without reaching a resolution.
Awareness of Risks Not Translating Into Action
While financial services leaders appear highly aware of AI-related risks, the research indicates that their organizations are lagging behind in implementing measures to limit the impact on vulnerable customers.
The vast majority, 90 percent, believe that AI could worsen bias and digital exclusion among vulnerable customers. Yet only 23 percent expressed confidence that their organization's implementation approach presents little or no risk.
Leaders identified algorithmic bias, increased exposure to fraud and scams and reduced access to human support as the three most significant risks associated with AI adoption, each cited by 41 percent of respondents.
