Financial institutions are increasingly using advanced chatbots for customer service, but these tools still have limitations, according to a report by the Consumer Financial Protection Bureau (CFPB). The report revealed that while chatbots can handle basic tasks, they struggle with complex issues and can present legal risks and potential loss of goodwill for institutions. Today’s customer service uses both interactive voice response technology and AI-powered chatbots. However, current chatbots have limitations such as difficulty solving complex issues, providing inaccurate information, and denying or delaying access to human representatives. Moreover, they may present security risks like hacking and phishing. Excessive or improper use of chatbots can lead to violation of finance and consumer protection laws and can damage consumer trust.
The CFPB will continue monitoring the use of chatbot technology and encourages the public to submit complaints about issues with chatbot services. It is expected that the functionality of chatbots will improve over time, but their usage could expose financial institutions to significant legal risks.