The role of AI in financial services: useful, responsible, and focused on outcomes 

Artificial Intelligence is no longer just a future possibility for financial services; it is already part of everyday processes. From analysing large amounts of data to supporting better conversations with customers, AI has the potential to reduce cost, increase consistency and improve outcomes. 

But the opportunity comes with responsibility. For firms working in credit and collections, AI must always be deployed in ways that are transparent, explainable and aligned with regulatory expectations. The FCA has been clear: existing rules, including Consumer Duty, apply regardless of the technology. 

Importantly, the regulator is not discouraging innovation. In fact, the FCA has launched initiatives such as its AI Showcase, bringing together firms, academics and technologists to explore safe, practical adoption. The message is clear: AI has a role to play in the future of financial services, provided it delivers good outcomes for customers. 

So, what should creditors and collectors take away today? 

 

• Start with problems, not with tools. 
  The best AI use cases are rooted in specific challenges: identifying vulnerability earlier, ensuring affordability conversations are consistent, or reducing repeat failures in repayment plans. 
   

• Keep humans in the loop. 
  AI can surface insights, but customers must be able to speak to trained agents who can make the final decisions. Human accountability is non-negotiable. 
   

• Focus on explainability. 
  If an agent or manager cannot understand why the AI has flagged something, it cannot be relied on. Transparency builds trust with staff, customers and regulators alike. 
   

• Test outcomes, not just accuracy. 
  It’s not enough for a model to be “right” firms must evidence that it leads to fairer, more sustainable customer outcomes. 
   

• Treat AI governance like any other system. 
  Keep an inventory of models, test them regularly, and log changes. Think of it as QA for your technology. 

 Is AI Really Replacing Jobs — or Just Changing How We Work? 

 

It’s natural that AI sparks concern about automation and job loss. But in credit and collections, the opposite is true. The FCA has been clear that accountability must remain with people, not systems. That means AI should be seen as a support tool, improving initial engagement, surfacing insights, handling repetitive admin, and reducing the cognitive load on agents, while leaving empathy, decision-making and customer care firmly in human hands. 

When positioned this way, AI strengthens roles rather than replaces them. Agents gain the confidence that their conversations are consistent and well-supported, while customers benefit from interactions that feel more personal and less process driven. 

 What it all means.

 

AI offers huge potential in financial services, and the FCA itself is encouraging exploration. The focus is not on stopping innovation, but on ensuring adoption is responsible, explainable and delivers better customer outcomes. 

The Inicio affordability solution adopts AI technology in ways that are consistent, configurable and auditable. Our solution reduces cognitive load for agents, ensures every interaction can be reviewed, and delivers clear MI on effectiveness — turning advanced AI tools into practical, trusted outcomes. Could your affordability solution benefit from AI? Why not speak to us.