AI has changed how debts are collected, making the process more efficient, personal, and in line with rules. Let's look at some real examples of how AI has helped with debt collection, especially for UK people and businesses.
AI can send messages automatically while still keeping them personal. For example, Tovie AI's Debt Collections Bot can talk to debtors through calls, texts, WhatsApp, Telegram, and email. It learns which way each person prefers to chat and uses that.
- Channel Choice: If someone likes getting reminders by text because they're busy, the AI will remember and use texts for them.
- Understanding Situations: AI can be kind if it knows someone's having money troubles. It might change how it talks to them to be more helpful.
AI uses data to spot trends and help companies collect debts better.
- Spotting Risks: Debt-Claims uses AI to look at customer info and spot who might not pay. This helps them focus on the right people.
- Testing What Works: AI can test different ways of talking to people to see what works best.
AI helps make sure debt collection follows all the rules, which is really important.
- Sticking to Laws: Tovie AI's bot follows all the rules set by groups like the FCA and CMA.
- Automatic Rule-Following: receeve's system automatically follows the latest rules to avoid legal problems.
AI does a lot of work that people used to do, which saves time and money.
- Working All the Time: AI can work 24/7, unlike people who need breaks.
- Cutting Costs: Using AI can save companies up to half of what they spend on staff.
AI helps make the debt collection process better for customers.
- Personal Messages: receeve's system sends messages that fit each person, which makes them more likely to pay.
- Flexible Payments: AI can offer different ways to pay, like in bits or through different methods.
AI can check how risky each case is and test different plans to see what works best.
- Checking Each Case: receeve's system looks at how likely each debt is to be paid.
- Testing Plans: AI can try different ways of talking to people to see what works best.
Caresso Law uses AI to collect debts. They promise to pay back debts up to £5,000 if they can't collect them.
- They use AI to handle lots of debts with little human help.
- They offer a guarantee and funding, which small companies like.
- They've shared their tech with other law firms in the UK and France.
While AI is great for debt collection, there are some things to be careful about:
1. Fairness: AI needs to be fair and not treat some people differently.
2. Following Rules: AI must follow all the laws about debt collection.
3. Being Nice to Customers: AI needs to be kind and respectful, not pushy.
In the future, AI in debt collection will probably:
1. Get better at understanding data and spotting risks.
2. Be even more personal in how it talks to people.
3. Have to follow new rules as they're made.
4. Work with other tech like blockchain to be even better.
To sum up, AI is making debt collection better in many ways. It's important to use it carefully and fairly to make sure it helps everyone involved.