HCLTech’s new study reveals that while 99% of payment organizations use AI, 91% are concerned about associated risks. The report highlights a paradox: AI’s necessity for balancing user experience and fraud protection is offset by governance and infrastructure deficiencies. Nearly half (49%) lack formal AI policies. The findings call for responsible AI governance and infrastructure modernization in the evolving payment landscape. The study was officially launched today at SIBOS in Frankfurt.
AI Adoption and Concerns
A new HCLTech report indicates widespread AI adoption in the payments industry, with 99% of organizations utilizing AI in payment operations. However, this adoption is overshadowed by significant concerns, as 91% of executives express apprehension about the risks associated with AI. A notable 60% also find current AI fraud detection tools ineffective, creating a trust deficit.
The Autonomous Future and Readiness
While the industry envisions an autonomous future, with over half (52%) of organizations expecting to achieve autonomy within 18–24 months, only 17% are currently operating fully in that mode. This reveals a gap between ambition and preparedness, indicating that many organizations may be overestimating their readiness for AI-driven autonomous payment systems.
Innovation, Modernization, and Customer Expectations
Innovation is prioritized, with over half of executives (52%) implementing transformation strategies and 58% preferring innovative methods over refining legacy systems. However, modernization lags, as only 20% of companies have cloud-native, real-time data systems. This deficiency impacts their ability to fully leverage AI capabilities. Furthermore, 87% of executives fear losing customers if they cannot offer instant payment capabilities, driving urgency for technological advancement.
European Cautiousness
European executives are more cautious, with only 12% expressing confidence in the long-term value of Agentic AI. A significant 57% prefer iterating on established products rather than pursuing completely new solutions. This conservative approach contrasts with other regions and may reflect differing regulatory landscapes or risk appetites.
Key Takeaways
The HCLTech report underscores the critical need for Responsible AI governance, robust infrastructure, and strategic clarity to navigate the evolving payments landscape successfully. Srinivasan Seshadri, Chief Growth Officer and Global Head, Financial Services at HCLTech, emphasized the gap between ambition and readiness. The research highlights that while the payments industry embraces AI, addressing trust, regulatory preparedness, and legacy system constraints is essential for future success.
Source: BSE
