The development of artificial intelligence (AI) is now moving beyond the phase of exploratory trials and experiments towards a stage of deep integration into core business processes, and payment management and debt collection systems are among those most affected by the advent of AI, according to the latest Economy in Focus report from one of Europe’s leading debt purchase companies. What’s more, the application of AI leads to fewer late payments and higher recovery rates, according to one of the study’s key findings.
According to the study’s authors, artificial intelligence is not merely changing the rules, but setting an entirely new standard for speed, accuracy and user experience. “AI has long since moved beyond the experimental phase. It is becoming a real driver of operational efficiency – helping companies to forecast their cash flows more accurately, manage risk and communicate better with their customers. It is in the field of payments management that this process is particularly visible and measurable,” the experts note.
Payments management is the area undergoing the fastest digital transformation compared to all others in the financial sector. The overall adoption of artificial intelligence in European business is expected to reach around 20 per cent by 2025. At the same time, this process is progressing several times faster in payment systems, and the adoption rate is more than three times higher. According to this year’s European Payment Report (EPR), 66 per cent of all companies in Europe are already using AI to manage their payments (up from 57 per cent a year earlier), with this share growing rapidly and steadily. The reason is that technology delivers immediate and measurable added value to businesses, particularly when it comes to settling liabilities. AI enables more accurate credit risk assessment, better cash flow forecasting, fewer late payments and higher-quality communication with customers.
The report reveals a surprising and somewhat provocative fact – consumers are adapting to AI faster than companies, which are lagging behind and unable to meet demand in this area. Customers’ expectations regarding artificial intelligence are growing faster than businesses’ readiness to implement it. Nearly 30 per cent of consumers say they would be more candid and open about their financial situation with an AI bot or agent than with a real person. There seems to be a logical explanation for this – financial difficulties are often accompanied by stress or embarrassment, making them a sensitive topic. Interacting with an intelligent chatbot or digital assistant removes this psychological barrier and provides a discreet environment in which the customer can calmly explore options for restructuring and rescheduling their debt.
At the same time, a much smaller proportion of businesses believe that their customers are more candid when communicating with AI chatbots. Furthermore, many companies are implementing standalone AI tools – for example, an automated bot for so-called notifications. However, the greatest impact and competitive advantage are achieved when artificial intelligence is integrated into the entire debt management cycle, according to researchers at Economy in Focus. This involves building a comprehensive system that simultaneously supports risk assessment, forecasting, customer communication and payment processing within a single, seamless process. This is also the direction in which the debt purchase and collection industry is expected to develop.
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