Debt Collectors Phased Out as AI Takes Over
Jakarta, CNBC Indonesia - The debt collection profession is not immune to the threat of artificial intelligence (AI). AI agents are now being deployed to pursue debtors who have delayed payments.
Amid an economic climate marked by high inflation and job scarcity, US debt has reached an all-time high. This has caused a sharp rise in late payments and credit delinquencies.
As more lenders seek to recover their dues, debt collection methods have drastically changed. AI agents are gradually replacing human debt collectors.
A recent Futurism report shows growing use of AI in debt collection. One example is Seattle resident Ben, who received a call from “Eve”, a voice AI agent sent by debt collection firm ProCollect, regarding a disputed US$226 (Rp4 million) debt owed to his previous landlord. Ben had already settled the obligation.
During the call, Eve repeatedly asked, “Would you like to settle this today by card or bank transfer?” and refused to connect Ben with a human agent despite his explanations.
Ben tested the AI system in an unconventional way, eventually being connected to a human agent. The staff then verified the debt had been settled and the collection attempt was a mistake.
According to Pedro Fernández, founder of AI-based call service company Altur, the debt collection industry is one of the earliest and fastest adopters of this technology. His company alone manages over 2.5 million debt collection calls monthly using AI agents. However, the system has significant flaws. Debt data often changes hands from original creditors to debt buyers in messy records.
Disorganised records make AI prone to errors, such as chasing paid-off debts or targeting the wrong individuals.
While human debt collectors are often seen as intrusive, they are far more flexible and capable of negotiating when data discrepancies or disputes arise. Unlike automated systems that operate on predefined patterns, humans can listen, understand context, and resolve issues more reasonably.
AI use in debt collection continues to evolve with technological advances. While offering efficiency for companies, challenges around data accuracy and fairness in the collection process remain a major hurdle before the technology can be fully trusted.