The latest findings from our Consumer Duty Index highlight a challenge for financial services companies. If use of AI is rising, consumers are not yet convinced that it will lead to better outcomes for customers.
Just one in nine consumers (11%) believe that greater use of AI will make financial services companies more likely to act in their customers’ best interests. In contrast, more than half (53%) believe increasing use of AI will make companies less likely to do so, while a quarter (23%) think it will make no difference to customer outcomes.
Consumer Duty, as detailed by the Financial Conduct Authority (FCA), requires companies to deliver good outcomes for customers, act in good faith, avoid harm and support customers in pursuing their financial objectives. But consumers are far more likely to view AI as a tool for meeting business needs rather than improving customer experience.
Two-thirds (68%) believe the main reason financial service companies are investing in AI is to reduce operating costs, while three in five (60%) think the primary motivation is to increase profits. In comparison, just a tenth (10%) believe companies are investing in AI to improve financial outcomes for customers. This rises among 18-34 year olds to 14%, and is lower among over-55s (8%).
Concerns are significantly higher among vulnerable customers; 56% of vulnerable customers believe increased AI adoption will make companies less likely to act in customers best interests (compared with 47% of consumers who are not considered vulnerable).
There is also a clear generational divide, with 18% of consumers aged 18-34 believing that greater AI adoption will make companies more likely to act in customers' interests, compared with just 7% of those age 55 and over.
Consumer Duty, as detailed by the Financial Conduct Authority (FCA), requires companies to deliver good outcomes for customers, act in good faith, avoid harm and support customers in pursuing their financial objectives. But consumers are far more likely to view AI as a tool for meeting business needs rather than improving customer experience.
Two-thirds (68%) believe the main reason financial service companies are investing in AI is to reduce operating costs, while three in five (60%) think the primary motivation is to increase profits. In comparison, just a tenth (10%) believe companies are investing in AI to improve financial outcomes for customers. This rises among 18-34 year olds to 14%, and is lower among over-55s (8%).
Concerns are significantly higher among vulnerable customers; 56% of vulnerable customers believe increased AI adoption will make companies less likely to act in customers best interests (compared with 47% of consumers who are not considered vulnerable).
There is also a clear generational divide, with 18% of consumers aged 18-34 believing that greater AI adoption will make companies more likely to act in customers' interests, compared with just 7% of those age 55 and over.
Consumer Duty, as detailed by the Financial Conduct Authority (FCA), requires companies to deliver good outcomes for customers, act in good faith, avoid harm and support customers in pursuing their financial objectives. But consumers are far more likely to view AI as a tool for meeting business needs rather than improving customer experience.
Two-thirds (68%) believe the main reason financial service companies are investing in AI is to reduce operating costs, while three in five (60%) think the primary motivation is to increase profits. In comparison, just a tenth (10%) believe companies are investing in AI to improve financial outcomes for customers. This rises among 18-34 year olds to 14%, and is lower among over-55s (8%).
When asked why AI may make financial service companies less likely to act in customers’ interests, consumers most commonly cite reduced human interaction (21%), concerns that companies are prioritising profit and cost savings over customers (20%), and a lack of personalisation (10%).
The importance of human support is particularly clear among older consumers. A quarter (24%) of over-55s cite reduced human interaction as a concern. Younger consumers aged 18-34 are less worried (16%).
These concerns align with core Consumer Duty themes of support, fair treatment and customer understanding, particularly among older or vulnerable customers.
However, consumers are not rejecting AI outright. Instead, they are highlighting safeguards they would like to see. Half (51%) say confidence in the use of AI by financial service companies would increase if they could speak to a human when needed - rising to three in five (59%) of those aged 55 and over. Other factors that would build confidence include companies remaining accountable for AI driven decisions (28%) and strong protection of personal information (22%) – rising to a quarter (24%) among younger consumers age 18-34 years.
