TROY, Mich.–Consumers have become more optimistic about the potential for artificial intelligence in financial services, but “skepticism remains,” according to a new analysis from J.D. Power.
“While forecasts of artificial intelligence (AI) integrations often bring a gloom and doom, man vs. machine, dystopian dynamic, it seems that customers generally are encouraged at the prospect of further implementation of generative AI (GenAI) tools and solutions at their respective banks,” J.D. Power said in releasing the findings of a new survey of more than 2,000 financial services customers in the United States about their utilization and opinions of AI.
More Than Half Have Used Gen AI
According to J.D. Power, 54% of all customers say they have used some version of a generative AI tool, and 32% say they have a complete understanding of AI.
“That level of comprehension and adoption has fueled a largely positive view of the technology, as 50% of customers are optimistic that AI will at least somewhat enhance their lives,” J.D. Power said. “But an undercurrent of skepticism still exists, as customers can’t shake concerns about security, an increased risk of fraud, and loss of human support. The good news is that these fears provide financial institutions with a roadmap toward broader adoption for their AI solutions.”
AI Usage Rises, But Trust Issues Persist
J.D. Power noted the use of AI chatbots among customers is on the rise and that overall, 54% of customers say they have used a GenAI tool. That level is significantly higher among national bank customers (66%) than regional banks (42%). Unsurprisingly, chatbot usage is higher among customers under the age of 40 (72%), J.D. Power reported.
When asked how confident customers feel about using AI chatbots for specific purposes, just 27% of customers said they trust AI for financial information and advice, the survey found. J.D. Power noted that when compared with other categories of advice, this ranks lower than travel information (37%), but slightly ahead of medical information (25%).
Understanding the Tech
“Some of the above hesitation undoubtedly comes from a lack of understanding of how GenAI solutions work,” J.D. Power said. “Despite this tech becoming increasingly common, there is a widespread lack of comprehensive knowledge about GenAI. While most customers have used GenAI, just 32% of customers claim to possess a full understanding of AI solutions, a rate that is highest among those under 40 years old.”
Finding the Opportunity
J.D. Power said the survey found consumers are most likely to be receptive to personalized alerts and recommendations that can help them, but many are “wary of allowing AI to control the actions and the application of personal security measures.”
The survey found:
- 62% of bank customers say they would immediately try AI-driven personalized account alerts to help avoid service charges and fees
- 44% would use automated phone voice assistants to resolve a customer service problem
- 42% would take personalized product recommendations from an AI agent.
The Onus is On FIs
“Given the fact that customers are clearly open to AI tools, the onus is on financial institutions to communicate to their customers a clear understanding of how AI works and its benefits,” J.D. Power said. “These solutions can help customers and banks forge a symbiotic relationship to improve workflows and bolster personalized advice and alerts, but there must be buy-in from the customer to make that happen. By getting insights into how and when customers are most likely to use AI, banks can tailor their outreach accordingly. Those that do it well stand to win big with customers, both new and existing.”