AI set to transform debt collection in US, bias worries remain

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The sector is seeing an 'explosion of technology'.

Artificial intelligence is about to transform Valerie Ingold’s industry – debt collection – and she says it is about time.

Only a little more than 10% of collections companies are currently using AI-driven tools, but 60% are considering or working toward doing so, according to the TransUnion credit reporting agency. Needleman and Derman said the new tools could prove a major help to companies in complying with consumer protection rules, while some could see AI-driven chatbots as less embarrassing to talk with about one’s debts than a human.

Still, he worries about exacerbating longstanding concerns and introducing new ones – bias in the data, possible harassment of debtors and even overwhelming an already heavily burdened court system. “That could result in disparate treatment, because of how divided geographically the country is in terms of where populations live.”

Skit.ai offers AI-driven voice tools for use by collections and other financial services companies that can be used to call debtors or receive calls from them, and which it says automates a million consumer conversations each week.

 

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