AI in Payments: Racing Ahead Without Guardrails, Report Finds
▼ Summary
– 99% of organizations use AI in payment operations, but 91% of executives are concerned about its risks and 60% find current AI fraud detection tools ineffective.
– Nearly half (49%) of organizations operate without formal AI policies, highlighting a lack of governance and infrastructure for responsible AI deployment.
– Over half (52%) of organizations expect to become autonomous within 18–24 months, yet only 17% are fully operating in that mode, showing a gap between ambition and readiness.
– 58% of executives prefer adopting innovative methods over refining legacy ones, but just 20% of companies have cloud-native, real-time data systems to support this innovation.
– European executives are less prepared, with only 19% feeling fully ready for the future of payments and 57% preferring to iterate on established products rather than try new approaches.
The payments industry is accelerating toward an AI-driven, autonomous future, yet a significant gap exists between ambition and actual readiness, according to recent research. A new study reveals that while 99% of organizations currently deploy artificial intelligence in their payment operations, a staggering 91% of executives voice serious concerns about the associated risks. This paradox highlights a sector embracing innovation while struggling with foundational governance and infrastructure challenges.
Nearly half of all organizations, approximately 49%, function without any formal AI policies in place. Widespread apprehension surrounds issues like AI hallucinations, synthetic fraud, and potential data leaks. This governance deficit is particularly pronounced in continental Europe, where a mere 19% of business leaders feel completely prepared for the future of payments.
The research identifies several critical tensions within the industry. Despite the near-universal adoption of AI, trust remains a major hurdle, with 60% of executives finding today’s AI-powered fraud detection tools to be ineffective. This lack of confidence exists alongside aggressive timelines for automation; over half of the organizations surveyed anticipate becoming autonomous within the next 18 to 24 months, yet only 17% are fully operational in that capacity today.
A clear preference for innovation over legacy system refinement is evident, with 58% of executives favoring the adoption of new methods. However, the technological backbone to support this shift is often missing. Just one in five companies possesses the cloud-native, real-time data systems necessary to fuel such advanced innovation. This modernization lag creates a significant bottleneck.
Customer expectations are adding considerable pressure, as 87% of leaders worry about losing clients if they cannot provide instant payment capabilities. European executives display a more cautious stance, with 12% expressing skepticism about the long-term value of advanced Agentic AI and 57% preferring to iterate on established products rather than pioneering entirely new solutions.
A senior company official commented on the findings, stating, “Payments leaders are wholeheartedly embracing innovation, but the chasm between their ambition and their operational readiness is stark. This research powerfully underscores the urgent need for responsible AI governance, comprehensive infrastructure modernization, and strategic clarity to not just survive, but truly thrive in the rapidly evolving payments landscape.”
(Source: ITWire Australia)
