If you’ve attended a financial crimes or payments conference in the last couple of years, you know AI has been the headline topic.
It’s everywhere, and everyone’s talking about it. But despite the buzz, there’s still a lot of uncertainty around what AI really means for our industry. Sure, we know AI can automate. But how do we actually use it – and why should we?
The truth is, AI is such a broad term it’s hard to wrap our heads around it.
But recently, the conversation has shifted to something more specific: agentic AI. And this is where things get interesting – because this isn’t just a theory anymore. Agentic AI is moving from theory into creating real-world impact, and payments are starting to feel that shift in a big way.
What Is Agentic AI and Why It Matters for Payments
Agentic AI is AI that can take action for you. Think of chatbots you can talk to, like Alexa or Siri. You ask them to play a song, and they do it. You ask a question, and they find the answer.
That’s old news though, so why is everyone suddenly talking about it at fraud conferences? Because now, these bots aren’t just answering questions – they’re making transactions.
How Agentic AI Is Expanding Beyond Closed Systems
Ordering through Alexa has been around for years.
You tell Alexa to buy something on Amazon and your card is charged. She even suggests items based on your shopping history. But that was a closed system – Amazon ordering from Amazon.
Now, the game has changed.
Imagine asking AI to order your usual pizza for delivery at 5 p.m. AI has evolved to know your favorite order, your address, and your saved payment details. You can even ask AI to buy a new hat from your favorite sports team or book a vacation to Florida – complete with flights, hotel, and a car rental.
The possibilities are endless.
Why Agentic AI Will Transform the Future of Payments
Our industry has seen plenty of change – magnetic stripes, EMV chips, online payments, and contactless transactions. But banking moves slowly. Change requires governance, regulatory alignment, risk assessments, and committee approvals – none of which happens fast.
Meanwhile, the world is changing by the minute. And that’s scary.
While we’ve been debating the impact of AI and using it for simple tasks like cleaning up emails or writing code, major AI companies and merchants have already started enabling Agentic AI for real transactions. And unlike Alexa’s closed system, these transactions happen across multiple platforms and merchants.
Key Risks of Agentic AI for Payments, Fraud, and Consumers
If you’re like me, you’re already thinking about the risks.
What if the hat you ordered is the wrong color? What if your vacation flights are at awful times because you asked for the cheapest option? Do networks have special dispute rights for these scenarios? The answer: no.
It’s the same old rules, but now a chatbot is making decisions for you.
Agentic AI bots are designed to follow your intent and ask for clarification when unsure. But here’s what you might not be thinking about:
- No new rules or regulations currently exist: What if a merchant strikes a deal with an AI provider to prioritize their products? If you ask for a hat but don’t specify where to buy it, the bot decides.
- Ethical gray areas: If you ask for the best deal, what stops the bot from exploiting loopholes or creating a new account for a first-time buyer coupon?
- Fraud risks: If bots can make payments, fraudsters will use their own bots without restrictions. Enumeration attacks, fake identities, and fraudulent purchases become easier. And yes, these things are already happening.
How Banks and Credit Unions Can Prepare for Agentic AI
Agentic AI is a shift that will redefine payments, fraud, and consumer behavior. The time to learn and adapt is now.
At your next conference, when AI inevitably comes up, ask questions. Keep the dialogue going and involve your security and payments teams. And most importantly – start using AI tools yourself.
If you don’t get familiar with it, you won’t understand it. Use AI for searches, conversations, and even transactions. AI is the future, and ignoring it will leave you behind.
Don’t forget … people mocked the internet at first, too.
Ready to connect with a card payments expert? Get in touch today.
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