Priya PatelTLDR: The introduction of artificial intelligence (AI) is transforming the payments industry and changing the way consumers pay for goods and services. AI-enabled payments streamline processes, combat fraud, and enhance the overall payment experience for consumers.
Key points:
- Over 80% of consumers engage in AI-related activities, such as online searches, navigation apps, and AI-generated product recommendations.
- Younger generations, such as Generation Z and Millennials, exhibit a high familiarity and interest in AI.
- A higher percentage of consumers show interest in AI-enabled shopping experiences compared to AI-enabled banking services, regardless of age, gender, or income.
- Younger consumers are somewhat hesitant to use credit, but AI can help reverse this trend by identifying the best payment options.
- Companies that embrace AI are influencing customer service and driving demand for AI-powered payments. Service providers should adopt a flexible and inclusive strategy to accommodate customer preferences.
The introduction of artificial intelligence (AI) is driving significant changes in the payments industry. AI-enabled payments streamline processes, combat fraud, and enhance the overall payment experience for consumers. In a recent study, it was found that over 80% of consumers engage in AI-related activities, such as online searches using AI, using navigation apps or devices, and receiving AI-generated product recommendations. This indicates that consumers may already be more engaged in AI-related activities than they realize.
When it comes to familiarity with AI, younger generations show a high level of interest and familiarity compared to older generations. Generation Z consumers have a particularly high familiarity with AI, with 65% considering themselves very or extremely familiar with the term. Millennials also exhibit similar rates of familiarity and interest in AI, with 51% considering themselves very or extremely familiar with the technology.
In terms of consumer preferences, the study found that consumers have a greater inclination toward AI involvement in their shopping activities compared to banking. The data shows that nearly 60% of Generation Z consumers express a keen interest in AI-enabled shopping, whereas only 53% show interest in AI-enabled banking services. This trend holds true across all other age groups as well.
Demographic nuances also emerge when considering specific groups. A higher share of women express at least some interest in AI’s role in shopping compared to banking. Additionally, nearly half of high-income earners prefer AI-enabled shopping experiences over AI-enabled banking services.
Furthermore, the study found that younger consumers, such as Generation Z, are somewhat hesitant to use credit. This could be due to economic conditions and concerns about high interest rates and fees. However, AI has the potential to reverse this trend by helping them identify the best payment options that align with their goals and preferences.
Overall, companies that embrace AI are influencing not only the way customers are served today but also the increasing demand for AI-powered payments. To ensure that the advantages of this technology are exploited across a wide customer base, service providers will need to adopt a flexible and inclusive strategy while actively tailoring their features to accommodate diverse customer preferences.
